Addition of +1 to the denomenator
I am not able to understand why +1 needs to be added to the denomenator
2 answers ( 0 marked as helpful)
Hi!
We use a logistic regression here, right?
So, the addition of 1 to the denominator in the logistic function is essential for transforming the linear combination of input features into a probability. It ensures that the output is bounded between 0 and 1, making it suitable for probability estimation in tasks such as calculating the probability of default for a customer.
Hope this helps!
Best,
Ned
not clear we have (1-pd)/pd=12.21 and even if we add 1 to the denomenator the equation should be 1-pd/pd=13.21 ,where is pd from the denomenator is going as in the video the equation says 1-pd=13.21??