Some selected properties

The main problem with our function is that it takes values on the entire real axis. In the case of logistic regression, however, the labels \( y_i \) are discrete variables. A typical example is the credit card data discussed below here, where we can set the state of defaulting the debt to \( y_i=1 \) and not to \( y_i=0 \) for one the persons in the data set (see the full example below).

One simple way to get a discrete output is to have sign functions that map the output of a linear regressor to values \( \{0,1\} \), \( f(s_i)=sign(s_i)=1 \) if \( s_i\ge 0 \) and 0 if otherwise. We will encounter this model in our first demonstration of neural networks.

Historically it is called the perceptron model in the machine learning literature. This model is extremely simple. However, in many cases it is more favorable to use a ``soft" classifier that outputs the probability of a given category. This leads us to the logistic function.