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Modeling and Multivariate Methods - SAS

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

Example of an Ordinal Logistic Model<br />

Figure 7.20 Ordinal Logistic Fit<br />

The model in this example reduces the –LogLikelihood of 429.9 to 355.67. This reduction yields a<br />

likelihood-ratio Chi-square for the whole model of 148.45 with 3 degrees of freedom, showing the<br />

difference in perceived cheese taste to be highly significant.<br />

The Lack of Fit test happens to be testing the ordinal response model compared to the nominal model. This<br />

is because the model is saturated if the response is treated as nominal rather than ordinal, giving 21<br />

additional parameters, which is the Lack of Fit degrees of freedom. The nonsignificance of Lack of Fit leads<br />

one to believe that the ordinal model is reasonable.<br />

There are eight intercept parameters because there are nine response categories. There are only three<br />

structural parameters. As a nominal problem, there are 8× 3 = 24 structural parameters.<br />

When there is only one effect, its test is equivalent to the Likelihood-ratio test for the whole model. The<br />

Likelihood-ratio Chi-square is 148.45, different from the Wald Chi-square of 115.15, which illustrates the<br />

point that Wald tests are to be regarded with some skepticism.<br />

To see whether a cheese additive is preferred, look for the most negative values of the parameters (Cheese D’s<br />

effect is the negative sum of the others, shown in Figure 7.1.).

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