DA0-002 Data Analysis Practice Question
A data scientist is building a model to predict customer churn (yes/no). After training a logistic regression model, the coefficient for 'monthly charges' is 0.05 with a p-value of 0.03. Which interpretation is correct at α=0.05?
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
For every unit increase in monthly charges, the odds of churn increase by about 5%.
The p-value < 0.05 indicates a statistically significant relationship; the positive coefficient means higher charges increase the log-odds of churn.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
The model's R-squared is 0.05.
Why it's wrong here
R-squared is not typically used for logistic regression.
- ✓
For every unit increase in monthly charges, the odds of churn increase by about 5%.
Why this is correct
The coefficient 0.05 in logistic regression represents log-odds; exp(0.05)≈1.05, a 5% increase in odds.
- ✗
Monthly charges decrease the probability of churn.
Why it's wrong here
Positive coefficient indicates increase in log-odds, so probability increases.
- ✗
Monthly charges have no significant effect on churn.
Why it's wrong here
The p-value is below 0.05, so the effect is significant.
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