Predictive Modeling Applications in Actuarial Science

Chapter 3 - Regression with Categorical Dependent Variables


Montserrat Guillén | University of Barcelona

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This chapter presents regression models where the dependent variable is categorical, whereas covariates can either be categorical or continuous. In the first part binary dependent variable models are presented and the second part is aimed at covering general categorical dependent variable models, where the dependent variable has more than two outcomes.

This chapter is illustrated with data sets, inspired by real-life situations. The corresponding R programs for estimation are also provided. They are based on R packages glm and mlogit. The same output can be obtained when using SAS or similar software programs for estimating the models presented in this chapter.


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