Question: (a) Determining Variables Affecting Fraudulent Transactions: I used a logistic regression analysis to find the factors that have a substantial impact on the likelihood that
(a) Determining Variables Affecting Fraudulent Transactions: I used a logistic regression analysis to find the factors that have a substantial impact on the likelihood that a transaction is fraudulent. Initially, I converted the variables "value" and "numdayopen" to their logarithmic form in order to take into consideration any potential non-linear relationship they might have with the dependent variable "isfraud."
At the 5% significance level, the logistic regression analysis showed that the variables "numdayopen," "log(value)," "dayind," and "international" have a statistically significant impact on the likelihood that a transaction is fraudulent. These variables' coefficients were found to be [coefficients] with p-values less than 0.05. This implies that these factors significantly affect the possibility that a transaction is fraudulent. Does this mean they used the log values in the LOGIT section instead of the normal values?
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