Topic Name:

Logistic Regression

SUBMITTED BY:
NAME: JERIN TASNIM BADHON
ID: 11813032
A presentation on how profitability is related with Product sales and Selling
Price in a Business.

Assume that, we want to learn about the relationship between profitability and Product sales as
well as Selling Price in a Business. The following dataset is collected for this purpose:
Objective of this work:
This study is aimed to use the dataset of Product sales (unit) and Selling price
(Tk.) to characterize the variation in profitability of a business.

⁍In this presentation, Logistic regression is used to estimate the relationship

between a dependent variable (i.e. Profit) and one more independent variables
(Selling Price & Product sales respectively).

⁍It is used to model a binary outcome, that is a variable, which can have only
two possible values: 0 or 1, yes or no.
‣Methodology:

While, the outcome variable is binary, we may use the logistic regression analysis for our research. The
logistic regression model is furnished below:
log ) =x1 + x2
Where,
X1 = Selling price
X2 = Product sales
= Mean of response variable
= Regression co-efficient
A presentation on how profitability is related with Product sales and Selling
Price in a Business.

The output of the assumed dataset in figure given below:

A presentation on how profitability is related with Product sales
and Selling Price in a Business.

Interpretation:
‣ The odds of having profitability is increased by 0.0067 for 1 unit increase in monthly Selling
price(Tk.) keeping monthly Product sales (unit) at a fixed level.
‣ Odds of having Profit is increased by 0.0001 for 1 unit increase in monthly Product sales (unit)
keeping monthly Selling Price (Tk.) at a fixed level.
Thanks