Question: Suppose you are trying to classify a variable where 96% of its observations equal 0 and only 4% equal 1. You run a logistic regression,

Suppose you are trying to classify a variable where 96% of its observations equal 0 and only 4% equal 1. You run a logistic regression, and the classification table shows that 97% of the classifications are correct. Why might this large percentage still not be cause for celebration?

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