Odds ratio
Odds ratios compare the probability of something happening with the probability of it not happening. This is sometimes easier to reason about than probabilities, particularly when you want to make decisions about choices. For example, if a customer has a 20% chance of churning, it maybe more intuitive to say "the chance of them not churning is four times higher than the chance of them churning".
mdl_churn_vs_relationship, explanatory_data, and plt_churn_vs_relationship are available and dplyr is loaded.
This exercise is part of the course
Introduction to Regression in R
Hands-on interactive exercise
Have a go at this exercise by completing this sample code.
# Update the data frame
prediction_data <- explanatory_data %>%
mutate(
has_churned = predict(
mdl_churn_vs_relationship, explanatory_data,
type = "response"
),
# Add the odds ratio
odds_ratio = ___
)
# See the result
prediction_data