In what real-life application is logistic regression frequently used?
Credit scoring for loans
Explanation:
Logistic regression is frequently used for binary classification problems, where the outcome has two possible results.
Example:
- Loan application → Approved / Rejected
- Credit scoring → Low risk / High risk
Why not the others?
- a) Identifying faces in images → Usually uses deep learning and neural networks.
- c) Recommending songs → Typically uses recommendation systems and collaborative filtering.
- d) Detecting fraudulent transactions → Can use logistic regression, but many modern systems use more advanced machine learning models.
