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Multinomial Logistic Regression Overview & Example

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Multinomial Logistic Regression Overview & Example

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Menia
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© © All Rights Reserved
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Download as PDF, TXT or read online on Scribd
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Multinomial Logistic Regression: Overview

& Example

What is Multinomial Logistic Regression?


Multinomial logistic regression statistically models the probabilities of at least three
categorical outcomes that do not have a natural order. This technique uses a linear
combination of independent variables to explore correlations with outcome
likelihoods and to predict outcomes using specific input conditions. This analysis is
also known as nominal logistic regression.

Analysts employ multinomial logistic regression when the dependent variable


encompasses several unordered categories, such as:

o A patient’s diagnosis category among multiple possible diseases.


o Evaluating the preferred type of news consumption (print, online,
television, radio, or social media).
o The choice of transportation modes like “Car,” “Bike,” “Bus,” and
“Walking.”

Multinomial logistic regression assesses which factors significantly affect the


categorical outcome. For instance, in predicting transportation mode choice, a model
can evaluate the influence of variables such as distance, income, and environmental
preference.

Unlike linear regression, which aims to predict outcome values, multinomial logistic
regression focuses on probabilities. It models how shifts in predictors alter the odds
of various categories occurring.

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Later in this post, we’ll perform a multinomial logistic regression and interpret the
results, highlighting what you can learn!

Learn more about Independent vs. Dependent Variables: Differences & Examples.

Why Use Multinomial Logistic Regression?


Why use multinomial logistic regression instead of ordinary least squares (OLS)
regression? The key lies in the nature of the dependent variable.

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Statisticians designed multinomial logistic regression models to assess the
probabilities of categorical outcomes. On the other hand, OLS regression is
inappropriate for categorical outcomes because it will predict probabilities outside the
valid 0 – 1 range and cannot model the nonlinear relationship between the
independent variables and the outcome probabilities.

Multinomial logistic regression falls within the family of generalized linear models.
This model uses a link function to mathematically connect the linear combination of
input variables and their coefficients (known as the linear predictor) to the expected
probability of each category. This transformation is crucial because it linearizes the
nonlinear relationships that typically exist in categorical data.

Sigmoid (s-shaped) relationship between


independent variable and probabilities.
The generalized logit link function transforms the typical S-shaped curve of logistic
models into a linear relationship for analysis. This function computes the natural
logarithm of the odds of each category occurring relative to a reference category.
The logistic function then translates these log odds back into probabilities, ensuring
they remain within the 0 to 1 range.

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