DA0-002 Data Analysis Practice Question
In a logistic regression model predicting customer churn (1 = churn, 0 = not churn), the coefficient for 'contract length' is -0.5. Which of the following is the correct interpretation?
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 each unit increase in contract length, the log-odds of churn decrease by 0.5.
In logistic regression, coefficients represent the log-odds change. A negative coefficient decreases the log-odds, meaning lower probability 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.
- ✓
For each unit increase in contract length, the log-odds of churn decrease by 0.5.
Why this is correct
Correct interpretation of logistic regression coefficient.
- ✗
Longer contract length increases the odds of churn.
Why it's wrong here
Negative coefficient decreases odds.
- ✗
The probability of churn decreases by 50% for each unit increase in contract length.
Why it's wrong here
Coefficient does not directly give probability change.
- ✗
Contract length is not a significant predictor.
Why it's wrong here
Significance depends on p-value, not coefficient sign.
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