I get a group of data and would like to use the regression to analysis the relationship. The dependent variable Y is a kind of loss rate, so it is strictly belong to [0, 1], e.g. I have $100, and I will loss 5% at day 1, 3% on day 2, 4% day 3, ...then Y is (5%, 3%, 4%, ....); I also have some independent variables X1, X2, etc.
Cause Y is belong to [0, 1], when I try the linear regression, I get a lot of negative predicted value when doing the forecast, so I would like to try the logistic regression.
The problem I meet is that, is there any hypothesis for using logistic regression? I choose the family as binomial, the model result is what I would like to see, but I remember that binomial is for 0, 1(classified) problem, can I model the loss rate this way here? Do I need to do any hypothesis test?
Thanks for the kindly help.
Cause Y is belong to [0, 1], when I try the linear regression, I get a lot of negative predicted value when doing the forecast, so I would like to try the logistic regression.
The problem I meet is that, is there any hypothesis for using logistic regression? I choose the family as binomial, the model result is what I would like to see, but I remember that binomial is for 0, 1(classified) problem, can I model the loss rate this way here? Do I need to do any hypothesis test?
Thanks for the kindly help.