尊敬的 微信汇率:1円 ≈ 0.046166 元 支付宝汇率:1円 ≈ 0.046257元 [退出登录]
SlideShare a Scribd company logo
1
MULTINOMIAL LOGISTIC REGRESSION
ANALYSIS – A METHODOLOGICAL REVIEW
HARISH KUMAR H.R
PALB-9007
II Ph.D.(Agri. Economics)
9986640586
2
Seminar Teachers:
Dr. K.B Umesh
Dr. P.S Srikantha Murthy
Major Advisor:
Dr. D. Sreenivas Murthy
IIHR-Bengaluru
Flow of seminar
 Introduction
 Odds and log odds
 Transformation of probability to log odds
 MLR model
 Assumptions
 Model fitting
 Model validation
 Analysis and interpretation
 Case studies
 Conclusion 3
 Regression is a functional relationship between dependent
variable and one or more independent variable
 logistic regression, or logit regression, or logit model is
a regression model where the dependent variable is categorical or
nominal.
Choosing an appropriate type of regression is mainly based on
 Type of dependent variable
 Type and number of independent variables
4
Dependent Independent Regression type
Quantitative Quantitative (Single variable)
Quantitative (>1 variable)
Simple linear regression
Multiple linear regression
Qualitative
Dichotomous (Yes/No)
> 2 Categories/outcomes
Quantitative /Qualitative or both
Binary logistic regression
Multinomial logistic regression
 Multinomial logistic regression is a simple extension of
binary logistic regression that allows for more than two
categories of the dependent or outcome variable.
 It is used to model nominal outcome variables, in which
the log odds of the outcomes are modeled as a linear
combination of the predictor variables.
 The independent (predictor) variables can be either
dichotomous (i.e., binary) or continuous (i.e., interval or
ratio in scale).
5
◦ Odds are simply a different expression of the
probability. The probability of an event occurring
relative to the probability of an event not occurring.
In terms of probabilities, the equation above is translated into:
Where p is the probability of the event occurring.
b’s are regression coefficients and x’s are independent variables
𝑜𝑑𝑑𝑠 =
𝑝
1 − 𝑝
𝑙𝑜𝑔
𝑝
1−𝑝
= 𝑏0 + 𝑏1𝑥1 + ⋯ + 𝑏𝑝𝑥𝑝
6
Why do we take all the trouble doing the
transformation from probability to log odds
 One reason is that it is usually difficult to model a variable which has
restricted range, such as probability.
 Another reason is that among all of the infinitely many choices of
transformation, the log of odds is one of the easiest to understand and
interpret. This transformation is called logit transformation.
Probability ranges from 0 to 1
Odds range from 0 to ∞
Log Odds range from −∞ to +∞
It maps probability ranging between 0 and 1 to log odds ranging from negative
infinity to positive infinity.
That is why the log odds are used to avoid modeling a variable with a restricted
range such as probability.
?
7
Multinomial Logistic Model
 Suppose a dependent variable has M categories. One value (typically the first,
the last, or the value with the highest frequency) of the Dependent variable is
designated as the reference(base) category.
 The probability of membership in other categories is compared to the
probability of membership in the reference (base) category.
 For a dependent variable with M categories, this requires the calculation of
M-1 equations, one for each category relative to the reference category, to
describe the relationship between the dependent variable and the independent
variables.
 Examples:
1. Entering high school students make program choices among general
program, vocational program and academic program
2. Analysis of Farmers’ participation in agricultural Co-opreatives. (Non-
member, coopreative member, farmer group member)
3. Farmers’ perception and adoption to climate change. (no adoption, Crop
rotation, for Cultivate one season, for Mixing irrigation water, for Cultivation of
heat resistant varieties, move to another place of cultivation) 8
Hence, if the first category is the reference, then, for m = 2, …, M
 Where are ith respondent belongs to M category
and are regression coefficients
x’s are independent variables
i=1,2,3,….n
K=1,2,3,….K
Hence, for each case, there will be M-1 predicted log odds, one for each
category relative to the reference (base) category.













 K
k
ik
mk
m
i
i
X
Y
Y
p
m
p
1
)
1
(
)
(
ln 

Yi
 
9
When there are more than 2 groups, computing probabilities is a little more
complicated than it was in logistic regression.
For m = 2, …, M,
Where =
= linear combination of independent variables of
all outcomes except m outcome
For the reference(base) category,
   
 




 M
h
hi
mi
i
Z
Z
Y m
p
2
exp
1
exp
 
 




 M
h
hi
i
Z
Y
p
2
exp
1
1
1
Zmi 


K
k
ik
mk
m X
1


Zhi
10
Assumption 1: Your dependent variable should be measured at
the nominal level.
 Assumption 2: You have one or more independent variables that
are continuous, ordinal or nominal (including dichotomous
variables).
 Assumption 3: You should have independence of observations and the
dependent variable should have mutually exclusive and
exhaustive categories.
 Assumption 4: There should be no Multicollinearity.
 Assumption 5: There needs to be a linear relationship between any
continuous independent variables and the logit
transformation of the dependent variable.
 Assumption 6: There should be no outliers, high leverage values or highly
influential points.
Assumption checking
11
Reference: STARKWEATHER, J. AND AMANDA, K. M., 2011, Multinomial Logistic
Regression. https://it.unt.edu/sites/default/files/mlr_jds_aug2011.pdf.
 The obtained model has said to be fit the data based on the chi
square value in the model fitting information and goodness of fit
tables.
 In multinomial logistic regression, the proportion of variance that
can be explained by the model is measured by Pseudo R-square
value. which indicates that how much the independent variables
are good to explain the impact on dependent variable in order to
make the model adequate.
 Pseudo R-square value ranges from 0 to 1. zero indicates no
variation at all and 1 indicates perfect variation.
 The model building process is based on step wise regression.
12
Classification matrix:
It is a standard tool for evaluation of statistical model.
It compares actual to predicted values for each predicted state.
It is an important tool for assessing the results of prediction because it makes
it easy to understand and account for the effects of wrong predictions.
By viewing the amount and percentages in each cell of this matrix, you can
quickly see how often the model predicted accurately.
13
EXAMPLE
14
 While entering high school, students make program choices among
general program, vocational program and academic
program.
 Their choice might be modeled using their writing score (Write)
and their social economic status (Ses).
 The data set contains variables on 200 students. The outcome variable
is prog, program type. The predictor variables are social economic
status, ses, a three-level categorical variable as low (1), medium (2) and
high (3) and writing score, write, a continuous variable.
 data.csv
15
Example
1
16
3
2
17
4 5
18
N Marginal
Percentage
prog
academic 105 52.5
general 45 22.5
vocation 50 25.0
ses
1.00 47 23.5
2.00 95 47.5
3.00 58 29.0
Valid 200 100.0
Missing 0
Total 200
19
Source: Author’s calculations
Model Model Fitting
Criteria
Likelihood Ratio Tests
-2 Log
Likelihood
Chi-Square df Sig.
Intercept Only 254.986
Final 206.756 48.230 6 0.000
Ho : There is no significance difference between null model and final model
sig. p value < 0.05 , reject null hypothesis.
The likelihood ratio chi-square of 48.23 with a p-value < 0.0001 tells us that our model as a
whole fits significantly better than an empty model
If it is not significant we will stop the analysis here it self.
20
Source: Author’s calculations
Chi-Square df Sig.
Pearson 119.766 120 0.489
Deviance 129.875 120 0.254
Cox and Snell 0.214
Nagelkerke 0.246
McFadden 0.118
Table 4: Pseudo R-Square
Ho : The model is adequately fit the data
sig. p value > 0.05 , accept null hypothesis.
21
Source: Author’s calculations
Effect Model Fitting Criteria Likelihood Ratio Tests
-2 Log Likelihood of Reduced
Model
Chi-Square df P value
Intercept 206.756a 0.000 0 .
Write 238.203 31.447 2 0.000
Ses 217.815 11.058 4 0.026
This table shows which of the independent variables are statistically significant. You can
see that write was statistically significant because p =0.000 (<0.05) . On the other hand,
the ses variable was statistically significant because p = .026 (<0.05). There is not usually
any interest in the model intercept.
This table is mostly useful for nominal independent variables because it is the only table
that considers the overall effect of a nominal variable, unlike the Parameter
Estimates table, as shown in next slide.
22
Source: Author’s calculations
Academic as a base
category
coefficient Std. Error Wald
statistic
df P value
general
Intercept 1.689 1.227 1.896 1 0.169
write - 0.058 0.021 7.320 1 0.007
[ses=1.00] 1.163 0.514 5.114 1 0.024
[ses=2.00] 0.630 0.465 1.833 1 0.176
[ses=3.00] 0b . . 0 .
vocation
Intercept 4.236 1.205 12.361 1 0.000
write - 0.114 0.022 26.139 1 0.000
[ses=1.00] 0.983 0.596 2.722 1 0.099
[ses=2.00] 1.274 0.511 6.214 1 0.013
[ses=3.00] 0b . . 0 .
b. This parameter is set to zero because it is redundant.
23
Source: Author’s calculations
The two equations :
 𝒍𝒏
𝑷 𝒑𝒓𝒐𝒈=𝒈𝒆𝒏𝒆𝒓𝒂𝒍
𝑷 𝒑𝒓𝒐𝒈=𝒂𝒄𝒂𝒅𝒆𝒎𝒊𝒄
= 𝟏. 𝟔𝟖𝟗 – 𝟎. 𝟎𝟎𝟓𝟖 𝒘𝒓𝒊𝒕𝒆 + 𝟏. 𝟏𝟔𝟑 𝐬𝐞𝐬 = 𝟏 + 𝟎. 𝟔𝟑 𝐬𝐞𝐬 = 𝟐
 𝒍𝒏
𝑷 𝒑𝒓𝒐𝒈=𝒗𝒐𝒄𝒂𝒕𝒊𝒐𝒏
𝑷 𝒑𝒓𝒐𝒈=𝒂𝒄𝒂𝒅𝒆𝒎𝒊𝒄
= 𝟒. 𝟐𝟑𝟔 – 𝟎. 𝟏𝟏𝟒 𝒘𝒓𝒊𝒕𝒆 + 𝟎. 𝟗𝟖𝟑 𝐬𝐞𝐬 = 𝟏 + 𝟏. 𝟐𝟕𝟒 𝐬𝐞𝐬 = 𝟐
•A one-unit increase in the variable write is associated with a 0.058 decrease in
the relative log odds of being in general program versus academic program .
•A one-unit increase in the variable write is associated with a 0.114decrease in
the relative log odds of being in vocation program versus academic program.
•The relative log odds of being in general program versus in academic program
will increase by 1.163 if moving from the highest level of ses (ses = 3) to the
lowest level of ses (ses = 1).
24
Observed
frequency
Predicted
academic general vocation Percent Correct
academic 92 4 9 87.6
general 27 7 11 15.6
vocation 23 4 23 46.0
Overall
Percentage
71.0% 7.5% 21.5% 61.0
25
Source: Author’s calculations
26
An econometric analysis of farmer’s credit issues in Andhra Pradesh, India (with reference to
south coastal Andhra – a multinomial logit regression model)
Srinivasa R.P
Methodology
Study area: Andhra Pradesh (Guntur and Prakasam district)
Sample size: 50
Dependent variables
The dependent variable of the model is the households’ choice of approaches for borrowing
from different sources.
1. Institutional Sources
2. Both Institutional and Non-institutional Sources
3. Friend and Relatives
4. Borrowing from money lender (Non institutional source) alone = Reference category
Independent variable
X1 = Age of the head of the household
X2 = Sex as binary (Male-1, Female-0)
X3 = Literacy status as binary (Illiterate-1, literate-0)
X4 = Type of Ownership as binary (Tenancy-1, Own-0)
X5 = Income from other than Agriculture
X6 = Gross Agriculture Income
X7 = Farm size
X8 = Family Size 27
28
Table 9: Factors influencing the sources of borrowing with outcome of institutional sources
Note: *indicates five percent level of significance.
Reference/base category: Borrowing from money lender (Non institutional source) alone
29
Table 8: Factors influencing the sources of borrowing with outcome of institutional and non-
institutional sources
Note: *indicates five percent level of significance
Reference/base category: Borrowing from money lender (Non institutional source) alone
30
Table 10: Factors influencing the sources of borrowing with outcome of relatives and friends
Note: *indicates one percent level of significance ** indicates five percent level of significance
*** indicates ten percent level of significance
Reference/base category: Borrowing from money lender (Non institutional source) alone
Number of observation = 100
LR chi2 (24) = 83.77
Prob> chi2 = 0.0000
Psedo R2 = 0.3373
Log Likelihood = -82.2961
Multinomial Logistic Regression Model in Identifying Factors of m4agriNEI in CSA
Innovations
SINGH, S.P., SING, R.J., CHAUHAN, J.K., RAM SINGH AND HEMOCHANDRA, L
Methodology
 The study was conducted in four project districts viz. Ri-bhoi, East Khasi Hills, West
Khasi Hills and West Jaintia Hills districts of Meghalaya.
 Sample size: 65 farmers
Independent and Dependent variables
 The study includes a set of independent variables (Timeliness’, ‘Accuracy’,
‘Relevancy’, ‘Economy’ and ‘Completeness’ of information of AAS (Agro Advisory
Services) of m4agriNEI to understand the extent and differentials in the level of
adaptation intention in enhancing CSA (Climate Smart Agriculture) innovation by the
registered farmers.
 The study embraces ‘Adaptation Intension in enhancing CSA (Climate Smart
Agriculture) innovation by the registered farmers’ as dependent variable (Low,
medium and High adoption intensions).
31
Table 11 : Model fitting information
Model Model Fitting
Criteria -2 Log
Likelihood
Chi- Square df Sig.
Intercept Only 108.907
Final 56.007 52.901*** 22 .001
(*** p <0.01)
Table 12: Pseudo R square
Cox and Snell R2 Nagelkerke R2
0.557 0.633
32
H0: There was no significant difference between null model and the final model
Table 13: Relationship of independent variables and competency level of farmers
using Likelihood Ratio Tests
Effects 2 Log
Likelihood of
Reduced Mode
Chi- Square df Sig.
Intercept 56.007 0.00 0 .00
Timeliness 74.009*** 18.003 4 .001
Economy 70.708** 14.702 6 .023
Relevancy 64.224* 8.217 4 .084
Accuracy 72.229*** 16.292 4 .003
Completeness 63.343 7.337 4 .119
(*** p <0.01, **p < 0.05 and *p < 0.10)
33
 If the number of observations is lesser than the number of
features, MLR should not be used, otherwise, it may lead to
over fitting
 Non linear problems can't be solved with logistic
regression since it has a linear decision surface
 The major limitation of MLR is assumption of linearity
between the dependent and independent variables
34
 The usage of the MLR model gives the opportunity to deal with a response
categorical variable with more than two levels and variety of explanatory
variables.
 MLR indicates the effect of each of explanatory variables as well as its
additive effect by used in the analysis
 The logistic regression model is a suitable model to many types of data
when the response variable with more than two categories. MLR has no
any restrictions about the explanatory variables; this model is most
common in the categorical data analysis.
 MLR can be used in many areas of social, educational, health, behavioral
and even scientific experiments.
35
36
Suggestions:
1. Dr. P.S Srikantha Murthy
Can this model be used to solve the problems affecting the agriculture? Any examples?
Yes, explained in slide number 8
Are there any studies by students/faculties of UAS-Bengaluru has been used model?
To analyze the influence of different factors on decision pattern of decision
making while adopting new innovations by the farmers
(Naveen Kumar G.S., 2018)
Limitations of Multinomial Logistic Regression?
Explained in Slide no 34
2. Dr. K.B Umesh
Include Economic content in the topic?
With the help of case studies, I tried to explained how multinomial logistic
regression used in agriculture sector
Reference:
• SAMWEL, N., MWENDA, ANTHONY, K. W. AND ANTHONY, G. W., 2015, Analysis of
Tobacco Smoking Patterns in Kenya Using the Multinomial Logit Model. American Journal
of Theoretical and Applied Statistics, 4(3):89-98.
• TAMURA, K. A. AND GIAMPAOLI, V., 2010, Prediction in multilevel logistic regression.
Communications in Statistics - Simulation and Computation, 39: 1083-1096.
• GRILLI, L. AND RAMPICHINI, C., 2007, A multilevel multinomial logit model for the
analysis of graduates’ skills. Statistical Methods and Applications. 16: 381-393.
• DIAZ, M. M. AND ONES, V. G., 2005, Estimating multilevel models for categorical
data via generalized least squares. Revista Colombiana de Estadística. 28: 63-76.
• Data source: Institute for Digital Research and Education
37
38

More Related Content

What's hot

Poisson regression models for count data
Poisson regression models for count dataPoisson regression models for count data
Poisson regression models for count data
University of Southampton
 
Logistic regression
Logistic regressionLogistic regression
Logistic regression
saba khan
 
Multivariate analysis
Multivariate analysisMultivariate analysis
Multivariate analysis
SUDARSHAN KUMAR PATEL
 
Introduction to Generalized Linear Models
Introduction to Generalized Linear ModelsIntroduction to Generalized Linear Models
Introduction to Generalized Linear Models
richardchandler
 
Multicolinearity
MulticolinearityMulticolinearity
Multicolinearity
Pawan Kawan
 
Logistic regression with SPSS
Logistic regression with SPSSLogistic regression with SPSS
Logistic regression with SPSS
LNIPE
 
Multicollinearity PPT
Multicollinearity PPTMulticollinearity PPT
Multicollinearity PPT
GunjanKhandelwal13
 
Logistic regression
Logistic regressionLogistic regression
Logistic regression
YashwantGahlot1
 
Multiple Regression and Logistic Regression
Multiple Regression and Logistic RegressionMultiple Regression and Logistic Regression
Multiple Regression and Logistic Regression
Kaushik Rajan
 
Regression analysis
Regression analysisRegression analysis
Regression analysis
saba khan
 
Logistic regression with SPSS examples
Logistic regression with SPSS examplesLogistic regression with SPSS examples
Logistic regression with SPSS examples
Gaurav Kamboj
 
Regression Analysis
Regression AnalysisRegression Analysis
Regression Analysis
Muhammad Fazeel
 
Linear regression
Linear regressionLinear regression
Linear regression
Karishma Chaudhary
 
Simple linear regression
Simple linear regressionSimple linear regression
Simple linear regression
pankaj8108
 
Multiple regression presentation
Multiple regression presentationMultiple regression presentation
Multiple regression presentation
Carlo Magno
 
Multivariate Analysis
Multivariate AnalysisMultivariate Analysis
Multivariate Analysis
Stig-Arne Kristoffersen
 
Linear regression theory
Linear regression theoryLinear regression theory
Linear regression theory
Saurav Mukherjee
 
Regression analysis ppt
Regression analysis pptRegression analysis ppt
Regression analysis ppt
Elkana Rorio
 
Dummyvariable1
Dummyvariable1Dummyvariable1
Dummyvariable1
Sreenivasa Harish
 
Logistic regression
Logistic regressionLogistic regression
Logistic regression
VARUN KUMAR
 

What's hot (20)

Poisson regression models for count data
Poisson regression models for count dataPoisson regression models for count data
Poisson regression models for count data
 
Logistic regression
Logistic regressionLogistic regression
Logistic regression
 
Multivariate analysis
Multivariate analysisMultivariate analysis
Multivariate analysis
 
Introduction to Generalized Linear Models
Introduction to Generalized Linear ModelsIntroduction to Generalized Linear Models
Introduction to Generalized Linear Models
 
Multicolinearity
MulticolinearityMulticolinearity
Multicolinearity
 
Logistic regression with SPSS
Logistic regression with SPSSLogistic regression with SPSS
Logistic regression with SPSS
 
Multicollinearity PPT
Multicollinearity PPTMulticollinearity PPT
Multicollinearity PPT
 
Logistic regression
Logistic regressionLogistic regression
Logistic regression
 
Multiple Regression and Logistic Regression
Multiple Regression and Logistic RegressionMultiple Regression and Logistic Regression
Multiple Regression and Logistic Regression
 
Regression analysis
Regression analysisRegression analysis
Regression analysis
 
Logistic regression with SPSS examples
Logistic regression with SPSS examplesLogistic regression with SPSS examples
Logistic regression with SPSS examples
 
Regression Analysis
Regression AnalysisRegression Analysis
Regression Analysis
 
Linear regression
Linear regressionLinear regression
Linear regression
 
Simple linear regression
Simple linear regressionSimple linear regression
Simple linear regression
 
Multiple regression presentation
Multiple regression presentationMultiple regression presentation
Multiple regression presentation
 
Multivariate Analysis
Multivariate AnalysisMultivariate Analysis
Multivariate Analysis
 
Linear regression theory
Linear regression theoryLinear regression theory
Linear regression theory
 
Regression analysis ppt
Regression analysis pptRegression analysis ppt
Regression analysis ppt
 
Dummyvariable1
Dummyvariable1Dummyvariable1
Dummyvariable1
 
Logistic regression
Logistic regressionLogistic regression
Logistic regression
 

Similar to Multinomial Logistic Regression Analysis

Multiple Regression.ppt
Multiple Regression.pptMultiple Regression.ppt
Multiple Regression.ppt
TanyaWadhwani4
 
report
reportreport
report
Arthur He
 
Logistic regression and analysis using statistical information
Logistic regression and analysis using statistical informationLogistic regression and analysis using statistical information
Logistic regression and analysis using statistical information
AsadJaved304231
 
CH3.pdf
CH3.pdfCH3.pdf
Supervised Learning.pdf
Supervised Learning.pdfSupervised Learning.pdf
Supervised Learning.pdf
gadissaassefa
 
Binary OR Binomial logistic regression
Binary OR Binomial logistic regression Binary OR Binomial logistic regression
Binary OR Binomial logistic regression
Dr Athar Khan
 
Multinomial Logistic Regression.pdf
Multinomial Logistic Regression.pdfMultinomial Logistic Regression.pdf
Multinomial Logistic Regression.pdf
AlemAyahu
 
Modelo Generalizado
Modelo GeneralizadoModelo Generalizado
Modelo Generalizado
Julio Martinez Andrade
 
604_multiplee.ppt
604_multiplee.ppt604_multiplee.ppt
604_multiplee.ppt
Rufesh
 
Ders 2 ols .ppt
Ders 2 ols .pptDers 2 ols .ppt
Ders 2 ols .ppt
Ergin Akalpler
 
Chapter III.pptx
Chapter III.pptxChapter III.pptx
Chapter III.pptx
Beamlak5
 
Get Multiple Regression Assignment Help
Get Multiple Regression Assignment Help Get Multiple Regression Assignment Help
Get Multiple Regression Assignment Help
HelpWithAssignment.com
 
SURE Model_Panel data.pptx
SURE Model_Panel data.pptxSURE Model_Panel data.pptx
SURE Model_Panel data.pptx
GeetaShreeprabha
 
Course Title: Introduction to Machine Learning, Chapter 2- Supervised Learning
Course Title: Introduction to Machine Learning,  Chapter 2- Supervised LearningCourse Title: Introduction to Machine Learning,  Chapter 2- Supervised Learning
Course Title: Introduction to Machine Learning, Chapter 2- Supervised Learning
Shumet Tadesse
 
一比一原版(Otago毕业证书)新西兰奥塔哥大学毕业证成绩单
一比一原版(Otago毕业证书)新西兰奥塔哥大学毕业证成绩单一比一原版(Otago毕业证书)新西兰奥塔哥大学毕业证成绩单
一比一原版(Otago毕业证书)新西兰奥塔哥大学毕业证成绩单
ynlsmv4ja
 
一比一原版(RoyalVeterinary毕业证书)皇家兽医学院毕业证成绩单
一比一原版(RoyalVeterinary毕业证书)皇家兽医学院毕业证成绩单一比一原版(RoyalVeterinary毕业证书)皇家兽医学院毕业证成绩单
一比一原版(RoyalVeterinary毕业证书)皇家兽医学院毕业证成绩单
ynlsmv4ja
 
一比一原版(UCD毕业证书)爱尔兰都柏林大学毕业证成绩单
一比一原版(UCD毕业证书)爱尔兰都柏林大学毕业证成绩单一比一原版(UCD毕业证书)爱尔兰都柏林大学毕业证成绩单
一比一原版(UCD毕业证书)爱尔兰都柏林大学毕业证成绩单
ynlsmv4ja
 
一比一原版(UM毕业证书)马来亚大学毕业证成绩单
一比一原版(UM毕业证书)马来亚大学毕业证成绩单一比一原版(UM毕业证书)马来亚大学毕业证成绩单
一比一原版(UM毕业证书)马来亚大学毕业证成绩单
ynlsmv4ja
 
一比一原版(UPM毕业证书)马来西亚博特拉大学毕业证成绩单
一比一原版(UPM毕业证书)马来西亚博特拉大学毕业证成绩单一比一原版(UPM毕业证书)马来西亚博特拉大学毕业证成绩单
一比一原版(UPM毕业证书)马来西亚博特拉大学毕业证成绩单
ynlsmv4ja
 
一比一原版(KHU毕业证书)韩国庆熙大学毕业证成绩单
一比一原版(KHU毕业证书)韩国庆熙大学毕业证成绩单一比一原版(KHU毕业证书)韩国庆熙大学毕业证成绩单
一比一原版(KHU毕业证书)韩国庆熙大学毕业证成绩单
ynlsmv4ja
 

Similar to Multinomial Logistic Regression Analysis (20)

Multiple Regression.ppt
Multiple Regression.pptMultiple Regression.ppt
Multiple Regression.ppt
 
report
reportreport
report
 
Logistic regression and analysis using statistical information
Logistic regression and analysis using statistical informationLogistic regression and analysis using statistical information
Logistic regression and analysis using statistical information
 
CH3.pdf
CH3.pdfCH3.pdf
CH3.pdf
 
Supervised Learning.pdf
Supervised Learning.pdfSupervised Learning.pdf
Supervised Learning.pdf
 
Binary OR Binomial logistic regression
Binary OR Binomial logistic regression Binary OR Binomial logistic regression
Binary OR Binomial logistic regression
 
Multinomial Logistic Regression.pdf
Multinomial Logistic Regression.pdfMultinomial Logistic Regression.pdf
Multinomial Logistic Regression.pdf
 
Modelo Generalizado
Modelo GeneralizadoModelo Generalizado
Modelo Generalizado
 
604_multiplee.ppt
604_multiplee.ppt604_multiplee.ppt
604_multiplee.ppt
 
Ders 2 ols .ppt
Ders 2 ols .pptDers 2 ols .ppt
Ders 2 ols .ppt
 
Chapter III.pptx
Chapter III.pptxChapter III.pptx
Chapter III.pptx
 
Get Multiple Regression Assignment Help
Get Multiple Regression Assignment Help Get Multiple Regression Assignment Help
Get Multiple Regression Assignment Help
 
SURE Model_Panel data.pptx
SURE Model_Panel data.pptxSURE Model_Panel data.pptx
SURE Model_Panel data.pptx
 
Course Title: Introduction to Machine Learning, Chapter 2- Supervised Learning
Course Title: Introduction to Machine Learning,  Chapter 2- Supervised LearningCourse Title: Introduction to Machine Learning,  Chapter 2- Supervised Learning
Course Title: Introduction to Machine Learning, Chapter 2- Supervised Learning
 
一比一原版(Otago毕业证书)新西兰奥塔哥大学毕业证成绩单
一比一原版(Otago毕业证书)新西兰奥塔哥大学毕业证成绩单一比一原版(Otago毕业证书)新西兰奥塔哥大学毕业证成绩单
一比一原版(Otago毕业证书)新西兰奥塔哥大学毕业证成绩单
 
一比一原版(RoyalVeterinary毕业证书)皇家兽医学院毕业证成绩单
一比一原版(RoyalVeterinary毕业证书)皇家兽医学院毕业证成绩单一比一原版(RoyalVeterinary毕业证书)皇家兽医学院毕业证成绩单
一比一原版(RoyalVeterinary毕业证书)皇家兽医学院毕业证成绩单
 
一比一原版(UCD毕业证书)爱尔兰都柏林大学毕业证成绩单
一比一原版(UCD毕业证书)爱尔兰都柏林大学毕业证成绩单一比一原版(UCD毕业证书)爱尔兰都柏林大学毕业证成绩单
一比一原版(UCD毕业证书)爱尔兰都柏林大学毕业证成绩单
 
一比一原版(UM毕业证书)马来亚大学毕业证成绩单
一比一原版(UM毕业证书)马来亚大学毕业证成绩单一比一原版(UM毕业证书)马来亚大学毕业证成绩单
一比一原版(UM毕业证书)马来亚大学毕业证成绩单
 
一比一原版(UPM毕业证书)马来西亚博特拉大学毕业证成绩单
一比一原版(UPM毕业证书)马来西亚博特拉大学毕业证成绩单一比一原版(UPM毕业证书)马来西亚博特拉大学毕业证成绩单
一比一原版(UPM毕业证书)马来西亚博特拉大学毕业证成绩单
 
一比一原版(KHU毕业证书)韩国庆熙大学毕业证成绩单
一比一原版(KHU毕业证书)韩国庆熙大学毕业证成绩单一比一原版(KHU毕业证书)韩国庆熙大学毕业证成绩单
一比一原版(KHU毕业证书)韩国庆熙大学毕业证成绩单
 

Recently uploaded

Observational Learning
Observational Learning Observational Learning
Observational Learning
sanamushtaq922
 
How to Create User Notification in Odoo 17
How to Create User Notification in Odoo 17How to Create User Notification in Odoo 17
How to Create User Notification in Odoo 17
Celine George
 
Get Success with the Latest UiPath UIPATH-ADPV1 Exam Dumps (V11.02) 2024
Get Success with the Latest UiPath UIPATH-ADPV1 Exam Dumps (V11.02) 2024Get Success with the Latest UiPath UIPATH-ADPV1 Exam Dumps (V11.02) 2024
Get Success with the Latest UiPath UIPATH-ADPV1 Exam Dumps (V11.02) 2024
yarusun
 
Creation or Update of a Mandatory Field is Not Set in Odoo 17
Creation or Update of a Mandatory Field is Not Set in Odoo 17Creation or Update of a Mandatory Field is Not Set in Odoo 17
Creation or Update of a Mandatory Field is Not Set in Odoo 17
Celine George
 
Diversity Quiz Prelims by Quiz Club, IIT Kanpur
Diversity Quiz Prelims by Quiz Club, IIT KanpurDiversity Quiz Prelims by Quiz Club, IIT Kanpur
Diversity Quiz Prelims by Quiz Club, IIT Kanpur
Quiz Club IIT Kanpur
 
220711130082 Srabanti Bag Internet Resources For Natural Science
220711130082 Srabanti Bag Internet Resources For Natural Science220711130082 Srabanti Bag Internet Resources For Natural Science
220711130082 Srabanti Bag Internet Resources For Natural Science
Kalna College
 
Decolonizing Universal Design for Learning
Decolonizing Universal Design for LearningDecolonizing Universal Design for Learning
Decolonizing Universal Design for Learning
Frederic Fovet
 
CapTechTalks Webinar Slides June 2024 Donovan Wright.pptx
CapTechTalks Webinar Slides June 2024 Donovan Wright.pptxCapTechTalks Webinar Slides June 2024 Donovan Wright.pptx
CapTechTalks Webinar Slides June 2024 Donovan Wright.pptx
CapitolTechU
 
How to Create a Stage or a Pipeline in Odoo 17 CRM
How to Create a Stage or a Pipeline in Odoo 17 CRMHow to Create a Stage or a Pipeline in Odoo 17 CRM
How to Create a Stage or a Pipeline in Odoo 17 CRM
Celine George
 
What are the new features in the Fleet Odoo 17
What are the new features in the Fleet Odoo 17What are the new features in the Fleet Odoo 17
What are the new features in the Fleet Odoo 17
Celine George
 
A Quiz on Drug Abuse Awareness by Quizzito
A Quiz on Drug Abuse Awareness by QuizzitoA Quiz on Drug Abuse Awareness by Quizzito
A Quiz on Drug Abuse Awareness by Quizzito
Quizzito The Quiz Society of Gargi College
 
How to stay relevant as a cyber professional: Skills, trends and career paths...
How to stay relevant as a cyber professional: Skills, trends and career paths...How to stay relevant as a cyber professional: Skills, trends and career paths...
How to stay relevant as a cyber professional: Skills, trends and career paths...
Infosec
 
220711130095 Tanu Pandey message currency, communication speed & control EPC ...
220711130095 Tanu Pandey message currency, communication speed & control EPC ...220711130095 Tanu Pandey message currency, communication speed & control EPC ...
220711130095 Tanu Pandey message currency, communication speed & control EPC ...
Kalna College
 
Science-9-Lesson-1-The Bohr Model-NLC.pptx pptx
Science-9-Lesson-1-The Bohr Model-NLC.pptx pptxScience-9-Lesson-1-The Bohr Model-NLC.pptx pptx
Science-9-Lesson-1-The Bohr Model-NLC.pptx pptx
Catherine Dela Cruz
 
bryophytes.pptx bsc botany honours second semester
bryophytes.pptx bsc botany honours  second semesterbryophytes.pptx bsc botany honours  second semester
bryophytes.pptx bsc botany honours second semester
Sarojini38
 
Interprofessional Education Platform Introduction.pdf
Interprofessional Education Platform Introduction.pdfInterprofessional Education Platform Introduction.pdf
Interprofessional Education Platform Introduction.pdf
Ben Aldrich
 
Talking Tech through Compelling Visual Aids
Talking Tech through Compelling Visual AidsTalking Tech through Compelling Visual Aids
Talking Tech through Compelling Visual Aids
MattVassar1
 
Brand Guideline of Bashundhara A4 Paper - 2024
Brand Guideline of Bashundhara A4 Paper - 2024Brand Guideline of Bashundhara A4 Paper - 2024
Brand Guideline of Bashundhara A4 Paper - 2024
khabri85
 
Ethiopia and Eritrea Eritrea's journey has been marked by resilience and dete...
Ethiopia and Eritrea Eritrea's journey has been marked by resilience and dete...Ethiopia and Eritrea Eritrea's journey has been marked by resilience and dete...
Ethiopia and Eritrea Eritrea's journey has been marked by resilience and dete...
biruktesfaye27
 
(T.L.E.) Agriculture: "Ornamental Plants"
(T.L.E.) Agriculture: "Ornamental Plants"(T.L.E.) Agriculture: "Ornamental Plants"
(T.L.E.) Agriculture: "Ornamental Plants"
MJDuyan
 

Recently uploaded (20)

Observational Learning
Observational Learning Observational Learning
Observational Learning
 
How to Create User Notification in Odoo 17
How to Create User Notification in Odoo 17How to Create User Notification in Odoo 17
How to Create User Notification in Odoo 17
 
Get Success with the Latest UiPath UIPATH-ADPV1 Exam Dumps (V11.02) 2024
Get Success with the Latest UiPath UIPATH-ADPV1 Exam Dumps (V11.02) 2024Get Success with the Latest UiPath UIPATH-ADPV1 Exam Dumps (V11.02) 2024
Get Success with the Latest UiPath UIPATH-ADPV1 Exam Dumps (V11.02) 2024
 
Creation or Update of a Mandatory Field is Not Set in Odoo 17
Creation or Update of a Mandatory Field is Not Set in Odoo 17Creation or Update of a Mandatory Field is Not Set in Odoo 17
Creation or Update of a Mandatory Field is Not Set in Odoo 17
 
Diversity Quiz Prelims by Quiz Club, IIT Kanpur
Diversity Quiz Prelims by Quiz Club, IIT KanpurDiversity Quiz Prelims by Quiz Club, IIT Kanpur
Diversity Quiz Prelims by Quiz Club, IIT Kanpur
 
220711130082 Srabanti Bag Internet Resources For Natural Science
220711130082 Srabanti Bag Internet Resources For Natural Science220711130082 Srabanti Bag Internet Resources For Natural Science
220711130082 Srabanti Bag Internet Resources For Natural Science
 
Decolonizing Universal Design for Learning
Decolonizing Universal Design for LearningDecolonizing Universal Design for Learning
Decolonizing Universal Design for Learning
 
CapTechTalks Webinar Slides June 2024 Donovan Wright.pptx
CapTechTalks Webinar Slides June 2024 Donovan Wright.pptxCapTechTalks Webinar Slides June 2024 Donovan Wright.pptx
CapTechTalks Webinar Slides June 2024 Donovan Wright.pptx
 
How to Create a Stage or a Pipeline in Odoo 17 CRM
How to Create a Stage or a Pipeline in Odoo 17 CRMHow to Create a Stage or a Pipeline in Odoo 17 CRM
How to Create a Stage or a Pipeline in Odoo 17 CRM
 
What are the new features in the Fleet Odoo 17
What are the new features in the Fleet Odoo 17What are the new features in the Fleet Odoo 17
What are the new features in the Fleet Odoo 17
 
A Quiz on Drug Abuse Awareness by Quizzito
A Quiz on Drug Abuse Awareness by QuizzitoA Quiz on Drug Abuse Awareness by Quizzito
A Quiz on Drug Abuse Awareness by Quizzito
 
How to stay relevant as a cyber professional: Skills, trends and career paths...
How to stay relevant as a cyber professional: Skills, trends and career paths...How to stay relevant as a cyber professional: Skills, trends and career paths...
How to stay relevant as a cyber professional: Skills, trends and career paths...
 
220711130095 Tanu Pandey message currency, communication speed & control EPC ...
220711130095 Tanu Pandey message currency, communication speed & control EPC ...220711130095 Tanu Pandey message currency, communication speed & control EPC ...
220711130095 Tanu Pandey message currency, communication speed & control EPC ...
 
Science-9-Lesson-1-The Bohr Model-NLC.pptx pptx
Science-9-Lesson-1-The Bohr Model-NLC.pptx pptxScience-9-Lesson-1-The Bohr Model-NLC.pptx pptx
Science-9-Lesson-1-The Bohr Model-NLC.pptx pptx
 
bryophytes.pptx bsc botany honours second semester
bryophytes.pptx bsc botany honours  second semesterbryophytes.pptx bsc botany honours  second semester
bryophytes.pptx bsc botany honours second semester
 
Interprofessional Education Platform Introduction.pdf
Interprofessional Education Platform Introduction.pdfInterprofessional Education Platform Introduction.pdf
Interprofessional Education Platform Introduction.pdf
 
Talking Tech through Compelling Visual Aids
Talking Tech through Compelling Visual AidsTalking Tech through Compelling Visual Aids
Talking Tech through Compelling Visual Aids
 
Brand Guideline of Bashundhara A4 Paper - 2024
Brand Guideline of Bashundhara A4 Paper - 2024Brand Guideline of Bashundhara A4 Paper - 2024
Brand Guideline of Bashundhara A4 Paper - 2024
 
Ethiopia and Eritrea Eritrea's journey has been marked by resilience and dete...
Ethiopia and Eritrea Eritrea's journey has been marked by resilience and dete...Ethiopia and Eritrea Eritrea's journey has been marked by resilience and dete...
Ethiopia and Eritrea Eritrea's journey has been marked by resilience and dete...
 
(T.L.E.) Agriculture: "Ornamental Plants"
(T.L.E.) Agriculture: "Ornamental Plants"(T.L.E.) Agriculture: "Ornamental Plants"
(T.L.E.) Agriculture: "Ornamental Plants"
 

Multinomial Logistic Regression Analysis

  • 1. 1
  • 2. MULTINOMIAL LOGISTIC REGRESSION ANALYSIS – A METHODOLOGICAL REVIEW HARISH KUMAR H.R PALB-9007 II Ph.D.(Agri. Economics) 9986640586 2 Seminar Teachers: Dr. K.B Umesh Dr. P.S Srikantha Murthy Major Advisor: Dr. D. Sreenivas Murthy IIHR-Bengaluru
  • 3. Flow of seminar  Introduction  Odds and log odds  Transformation of probability to log odds  MLR model  Assumptions  Model fitting  Model validation  Analysis and interpretation  Case studies  Conclusion 3
  • 4.  Regression is a functional relationship between dependent variable and one or more independent variable  logistic regression, or logit regression, or logit model is a regression model where the dependent variable is categorical or nominal. Choosing an appropriate type of regression is mainly based on  Type of dependent variable  Type and number of independent variables 4 Dependent Independent Regression type Quantitative Quantitative (Single variable) Quantitative (>1 variable) Simple linear regression Multiple linear regression Qualitative Dichotomous (Yes/No) > 2 Categories/outcomes Quantitative /Qualitative or both Binary logistic regression Multinomial logistic regression
  • 5.  Multinomial logistic regression is a simple extension of binary logistic regression that allows for more than two categories of the dependent or outcome variable.  It is used to model nominal outcome variables, in which the log odds of the outcomes are modeled as a linear combination of the predictor variables.  The independent (predictor) variables can be either dichotomous (i.e., binary) or continuous (i.e., interval or ratio in scale). 5
  • 6. ◦ Odds are simply a different expression of the probability. The probability of an event occurring relative to the probability of an event not occurring. In terms of probabilities, the equation above is translated into: Where p is the probability of the event occurring. b’s are regression coefficients and x’s are independent variables 𝑜𝑑𝑑𝑠 = 𝑝 1 − 𝑝 𝑙𝑜𝑔 𝑝 1−𝑝 = 𝑏0 + 𝑏1𝑥1 + ⋯ + 𝑏𝑝𝑥𝑝 6
  • 7. Why do we take all the trouble doing the transformation from probability to log odds  One reason is that it is usually difficult to model a variable which has restricted range, such as probability.  Another reason is that among all of the infinitely many choices of transformation, the log of odds is one of the easiest to understand and interpret. This transformation is called logit transformation. Probability ranges from 0 to 1 Odds range from 0 to ∞ Log Odds range from −∞ to +∞ It maps probability ranging between 0 and 1 to log odds ranging from negative infinity to positive infinity. That is why the log odds are used to avoid modeling a variable with a restricted range such as probability. ? 7
  • 8. Multinomial Logistic Model  Suppose a dependent variable has M categories. One value (typically the first, the last, or the value with the highest frequency) of the Dependent variable is designated as the reference(base) category.  The probability of membership in other categories is compared to the probability of membership in the reference (base) category.  For a dependent variable with M categories, this requires the calculation of M-1 equations, one for each category relative to the reference category, to describe the relationship between the dependent variable and the independent variables.  Examples: 1. Entering high school students make program choices among general program, vocational program and academic program 2. Analysis of Farmers’ participation in agricultural Co-opreatives. (Non- member, coopreative member, farmer group member) 3. Farmers’ perception and adoption to climate change. (no adoption, Crop rotation, for Cultivate one season, for Mixing irrigation water, for Cultivation of heat resistant varieties, move to another place of cultivation) 8
  • 9. Hence, if the first category is the reference, then, for m = 2, …, M  Where are ith respondent belongs to M category and are regression coefficients x’s are independent variables i=1,2,3,….n K=1,2,3,….K Hence, for each case, there will be M-1 predicted log odds, one for each category relative to the reference (base) category.               K k ik mk m i i X Y Y p m p 1 ) 1 ( ) ( ln   Yi   9
  • 10. When there are more than 2 groups, computing probabilities is a little more complicated than it was in logistic regression. For m = 2, …, M, Where = = linear combination of independent variables of all outcomes except m outcome For the reference(base) category,            M h hi mi i Z Z Y m p 2 exp 1 exp          M h hi i Z Y p 2 exp 1 1 1 Zmi    K k ik mk m X 1   Zhi 10
  • 11. Assumption 1: Your dependent variable should be measured at the nominal level.  Assumption 2: You have one or more independent variables that are continuous, ordinal or nominal (including dichotomous variables).  Assumption 3: You should have independence of observations and the dependent variable should have mutually exclusive and exhaustive categories.  Assumption 4: There should be no Multicollinearity.  Assumption 5: There needs to be a linear relationship between any continuous independent variables and the logit transformation of the dependent variable.  Assumption 6: There should be no outliers, high leverage values or highly influential points. Assumption checking 11 Reference: STARKWEATHER, J. AND AMANDA, K. M., 2011, Multinomial Logistic Regression. https://it.unt.edu/sites/default/files/mlr_jds_aug2011.pdf.
  • 12.  The obtained model has said to be fit the data based on the chi square value in the model fitting information and goodness of fit tables.  In multinomial logistic regression, the proportion of variance that can be explained by the model is measured by Pseudo R-square value. which indicates that how much the independent variables are good to explain the impact on dependent variable in order to make the model adequate.  Pseudo R-square value ranges from 0 to 1. zero indicates no variation at all and 1 indicates perfect variation.  The model building process is based on step wise regression. 12
  • 13. Classification matrix: It is a standard tool for evaluation of statistical model. It compares actual to predicted values for each predicted state. It is an important tool for assessing the results of prediction because it makes it easy to understand and account for the effects of wrong predictions. By viewing the amount and percentages in each cell of this matrix, you can quickly see how often the model predicted accurately. 13
  • 15.  While entering high school, students make program choices among general program, vocational program and academic program.  Their choice might be modeled using their writing score (Write) and their social economic status (Ses).  The data set contains variables on 200 students. The outcome variable is prog, program type. The predictor variables are social economic status, ses, a three-level categorical variable as low (1), medium (2) and high (3) and writing score, write, a continuous variable.  data.csv 15 Example
  • 16. 1 16
  • 19. N Marginal Percentage prog academic 105 52.5 general 45 22.5 vocation 50 25.0 ses 1.00 47 23.5 2.00 95 47.5 3.00 58 29.0 Valid 200 100.0 Missing 0 Total 200 19 Source: Author’s calculations
  • 20. Model Model Fitting Criteria Likelihood Ratio Tests -2 Log Likelihood Chi-Square df Sig. Intercept Only 254.986 Final 206.756 48.230 6 0.000 Ho : There is no significance difference between null model and final model sig. p value < 0.05 , reject null hypothesis. The likelihood ratio chi-square of 48.23 with a p-value < 0.0001 tells us that our model as a whole fits significantly better than an empty model If it is not significant we will stop the analysis here it self. 20 Source: Author’s calculations
  • 21. Chi-Square df Sig. Pearson 119.766 120 0.489 Deviance 129.875 120 0.254 Cox and Snell 0.214 Nagelkerke 0.246 McFadden 0.118 Table 4: Pseudo R-Square Ho : The model is adequately fit the data sig. p value > 0.05 , accept null hypothesis. 21 Source: Author’s calculations
  • 22. Effect Model Fitting Criteria Likelihood Ratio Tests -2 Log Likelihood of Reduced Model Chi-Square df P value Intercept 206.756a 0.000 0 . Write 238.203 31.447 2 0.000 Ses 217.815 11.058 4 0.026 This table shows which of the independent variables are statistically significant. You can see that write was statistically significant because p =0.000 (<0.05) . On the other hand, the ses variable was statistically significant because p = .026 (<0.05). There is not usually any interest in the model intercept. This table is mostly useful for nominal independent variables because it is the only table that considers the overall effect of a nominal variable, unlike the Parameter Estimates table, as shown in next slide. 22 Source: Author’s calculations
  • 23. Academic as a base category coefficient Std. Error Wald statistic df P value general Intercept 1.689 1.227 1.896 1 0.169 write - 0.058 0.021 7.320 1 0.007 [ses=1.00] 1.163 0.514 5.114 1 0.024 [ses=2.00] 0.630 0.465 1.833 1 0.176 [ses=3.00] 0b . . 0 . vocation Intercept 4.236 1.205 12.361 1 0.000 write - 0.114 0.022 26.139 1 0.000 [ses=1.00] 0.983 0.596 2.722 1 0.099 [ses=2.00] 1.274 0.511 6.214 1 0.013 [ses=3.00] 0b . . 0 . b. This parameter is set to zero because it is redundant. 23 Source: Author’s calculations
  • 24. The two equations :  𝒍𝒏 𝑷 𝒑𝒓𝒐𝒈=𝒈𝒆𝒏𝒆𝒓𝒂𝒍 𝑷 𝒑𝒓𝒐𝒈=𝒂𝒄𝒂𝒅𝒆𝒎𝒊𝒄 = 𝟏. 𝟔𝟖𝟗 – 𝟎. 𝟎𝟎𝟓𝟖 𝒘𝒓𝒊𝒕𝒆 + 𝟏. 𝟏𝟔𝟑 𝐬𝐞𝐬 = 𝟏 + 𝟎. 𝟔𝟑 𝐬𝐞𝐬 = 𝟐  𝒍𝒏 𝑷 𝒑𝒓𝒐𝒈=𝒗𝒐𝒄𝒂𝒕𝒊𝒐𝒏 𝑷 𝒑𝒓𝒐𝒈=𝒂𝒄𝒂𝒅𝒆𝒎𝒊𝒄 = 𝟒. 𝟐𝟑𝟔 – 𝟎. 𝟏𝟏𝟒 𝒘𝒓𝒊𝒕𝒆 + 𝟎. 𝟗𝟖𝟑 𝐬𝐞𝐬 = 𝟏 + 𝟏. 𝟐𝟕𝟒 𝐬𝐞𝐬 = 𝟐 •A one-unit increase in the variable write is associated with a 0.058 decrease in the relative log odds of being in general program versus academic program . •A one-unit increase in the variable write is associated with a 0.114decrease in the relative log odds of being in vocation program versus academic program. •The relative log odds of being in general program versus in academic program will increase by 1.163 if moving from the highest level of ses (ses = 3) to the lowest level of ses (ses = 1). 24
  • 25. Observed frequency Predicted academic general vocation Percent Correct academic 92 4 9 87.6 general 27 7 11 15.6 vocation 23 4 23 46.0 Overall Percentage 71.0% 7.5% 21.5% 61.0 25 Source: Author’s calculations
  • 26. 26
  • 27. An econometric analysis of farmer’s credit issues in Andhra Pradesh, India (with reference to south coastal Andhra – a multinomial logit regression model) Srinivasa R.P Methodology Study area: Andhra Pradesh (Guntur and Prakasam district) Sample size: 50 Dependent variables The dependent variable of the model is the households’ choice of approaches for borrowing from different sources. 1. Institutional Sources 2. Both Institutional and Non-institutional Sources 3. Friend and Relatives 4. Borrowing from money lender (Non institutional source) alone = Reference category Independent variable X1 = Age of the head of the household X2 = Sex as binary (Male-1, Female-0) X3 = Literacy status as binary (Illiterate-1, literate-0) X4 = Type of Ownership as binary (Tenancy-1, Own-0) X5 = Income from other than Agriculture X6 = Gross Agriculture Income X7 = Farm size X8 = Family Size 27
  • 28. 28 Table 9: Factors influencing the sources of borrowing with outcome of institutional sources Note: *indicates five percent level of significance. Reference/base category: Borrowing from money lender (Non institutional source) alone
  • 29. 29 Table 8: Factors influencing the sources of borrowing with outcome of institutional and non- institutional sources Note: *indicates five percent level of significance Reference/base category: Borrowing from money lender (Non institutional source) alone
  • 30. 30 Table 10: Factors influencing the sources of borrowing with outcome of relatives and friends Note: *indicates one percent level of significance ** indicates five percent level of significance *** indicates ten percent level of significance Reference/base category: Borrowing from money lender (Non institutional source) alone Number of observation = 100 LR chi2 (24) = 83.77 Prob> chi2 = 0.0000 Psedo R2 = 0.3373 Log Likelihood = -82.2961
  • 31. Multinomial Logistic Regression Model in Identifying Factors of m4agriNEI in CSA Innovations SINGH, S.P., SING, R.J., CHAUHAN, J.K., RAM SINGH AND HEMOCHANDRA, L Methodology  The study was conducted in four project districts viz. Ri-bhoi, East Khasi Hills, West Khasi Hills and West Jaintia Hills districts of Meghalaya.  Sample size: 65 farmers Independent and Dependent variables  The study includes a set of independent variables (Timeliness’, ‘Accuracy’, ‘Relevancy’, ‘Economy’ and ‘Completeness’ of information of AAS (Agro Advisory Services) of m4agriNEI to understand the extent and differentials in the level of adaptation intention in enhancing CSA (Climate Smart Agriculture) innovation by the registered farmers.  The study embraces ‘Adaptation Intension in enhancing CSA (Climate Smart Agriculture) innovation by the registered farmers’ as dependent variable (Low, medium and High adoption intensions). 31
  • 32. Table 11 : Model fitting information Model Model Fitting Criteria -2 Log Likelihood Chi- Square df Sig. Intercept Only 108.907 Final 56.007 52.901*** 22 .001 (*** p <0.01) Table 12: Pseudo R square Cox and Snell R2 Nagelkerke R2 0.557 0.633 32 H0: There was no significant difference between null model and the final model
  • 33. Table 13: Relationship of independent variables and competency level of farmers using Likelihood Ratio Tests Effects 2 Log Likelihood of Reduced Mode Chi- Square df Sig. Intercept 56.007 0.00 0 .00 Timeliness 74.009*** 18.003 4 .001 Economy 70.708** 14.702 6 .023 Relevancy 64.224* 8.217 4 .084 Accuracy 72.229*** 16.292 4 .003 Completeness 63.343 7.337 4 .119 (*** p <0.01, **p < 0.05 and *p < 0.10) 33
  • 34.  If the number of observations is lesser than the number of features, MLR should not be used, otherwise, it may lead to over fitting  Non linear problems can't be solved with logistic regression since it has a linear decision surface  The major limitation of MLR is assumption of linearity between the dependent and independent variables 34
  • 35.  The usage of the MLR model gives the opportunity to deal with a response categorical variable with more than two levels and variety of explanatory variables.  MLR indicates the effect of each of explanatory variables as well as its additive effect by used in the analysis  The logistic regression model is a suitable model to many types of data when the response variable with more than two categories. MLR has no any restrictions about the explanatory variables; this model is most common in the categorical data analysis.  MLR can be used in many areas of social, educational, health, behavioral and even scientific experiments. 35
  • 36. 36 Suggestions: 1. Dr. P.S Srikantha Murthy Can this model be used to solve the problems affecting the agriculture? Any examples? Yes, explained in slide number 8 Are there any studies by students/faculties of UAS-Bengaluru has been used model? To analyze the influence of different factors on decision pattern of decision making while adopting new innovations by the farmers (Naveen Kumar G.S., 2018) Limitations of Multinomial Logistic Regression? Explained in Slide no 34 2. Dr. K.B Umesh Include Economic content in the topic? With the help of case studies, I tried to explained how multinomial logistic regression used in agriculture sector
  • 37. Reference: • SAMWEL, N., MWENDA, ANTHONY, K. W. AND ANTHONY, G. W., 2015, Analysis of Tobacco Smoking Patterns in Kenya Using the Multinomial Logit Model. American Journal of Theoretical and Applied Statistics, 4(3):89-98. • TAMURA, K. A. AND GIAMPAOLI, V., 2010, Prediction in multilevel logistic regression. Communications in Statistics - Simulation and Computation, 39: 1083-1096. • GRILLI, L. AND RAMPICHINI, C., 2007, A multilevel multinomial logit model for the analysis of graduates’ skills. Statistical Methods and Applications. 16: 381-393. • DIAZ, M. M. AND ONES, V. G., 2005, Estimating multilevel models for categorical data via generalized least squares. Revista Colombiana de Estadística. 28: 63-76. • Data source: Institute for Digital Research and Education 37
  • 38. 38
  翻译: