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Modeling and Multivariate Methods - SAS

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Chapter 7 Performing Logistic Regression on Nominal <strong>and</strong> Ordinal Responses 207<br />

Logistic Fit Platform Options<br />

Figure 7.8 Parameter Estimates with Confidence Intervals<br />

Odds Ratios (Nominal Responses Only)<br />

When you select Odds Ratios, a report appears showing Unit Odds Ratios <strong>and</strong> Range Odds Ratios, as<br />

shown in Figure 7.9.<br />

Figure 7.9 Odds Ratios<br />

From the introduction (for two response levels), we had<br />

Prob( Y = r 1<br />

) <br />

log-------------------------------<br />

<br />

Prob( Y = r 2<br />

) <br />

=<br />

Xb<br />

where r 1 <strong>and</strong> r 1 are the two response levels<br />

so the odds ratio<br />

Prob( Y = r 1<br />

)<br />

------------------------------- = exp( Xβ)<br />

= exp( β 0<br />

) ⋅ exp ( β 1<br />

X 1<br />

)… exp( β i<br />

X i<br />

)<br />

Prob( Y = r 2<br />

)<br />

Note that exp(β i (X i + 1)) = exp(β i X i ) exp(β i ). This shows that if X i changes by a unit amount, the odds is<br />

multiplied by exp(β i ), which we label the unit odds ratio. As X i changes over its whole range, the odds are<br />

multiplied by exp((X high - X low )β i ) which we label the range odds ratio. For binary responses, the log odds<br />

ratio for flipped response levels involves only changing the sign of the parameter, so you might want the<br />

reciprocal of the reported value to focus on the last response level instead of the first.

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