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E20-007 · Question #25

You are building a logistic regression model to predict whether a tax filer will be audited within the next two years. Your training set population is 1000 filers. The audit rate in your training…

The correct answer is A. 42.0. See the full explanation below for the reasoning.

Question

You are building a logistic regression model to predict whether a tax filer will be audited within the next two years. Your training set population is 1000 filers. The audit rate in your training data is 4.2%. What is the sum of the probabilities that the model assigns to all the filers in your training set that have been audited?

Options

  • A42.0
  • B4.2
  • C0.42
  • D0.042

How the community answered

(19 responses)
  • A
    74% (14)
  • B
    16% (3)
  • C
    5% (1)
  • D
    5% (1)

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Full E20-007 Practice