ROC and AUC are important concepts for evaluating classification models in business (e.g. lead scoring).
In 3 minutes, I'll demystify AUC.
1. ROC Curve:
The ROC curve, which stands for the Receiver Operating Characteristic curve, is a graphical representation used to evaluate the performance of a binary classifier system as its discrimination threshold is varied.
2. True Positive Rate (TPR):
On the y-axis, the ROC curve plots the True Positive Rate (also known as sensitivity, or recall) which measures the proportion of actual positives that are correctly identified as such. It's calculated as TPR = TP / (TP + FN), where TP is true positives and FN is false negatives.
Logistic Regression is the most important foundational algorithm in Classification Modeling.
In 2 minutes, I'll crush your confusion.
Let's dive in:
1. Logistic regression is a statistical method used for analyzing a dataset in which there are one or more independent variables that determine a binary outcome (in which there are only two possible outcomes). This is commonly called a binary classification problem.
2. The Logit (Log-Odds):
The formula estimates the log-odds or logit. The right-hand side is the same as the form for linear regression. But the left-hand side is the logit function, which is the natural log of the odds ratio. The logit function is what distinguishes logistic regression from other types of regression.
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Its AI-driven approach feels like “ChatGPT for data.”