Making Sense of the Binary Logistic Regression Tool
 02
 Jul
 2010
 Posted ByJC
 InStatistics. (PDF).
 No Comments.
In some situations, Six Sigma practitioners find a Y that is discrete and Xs that are continuous. How can a regression equation be developed in these cases? Black Belt training indicated that the correct technique is something called logistic regression or binary regression. But this tool is often not well understood.
An example about a wellknown space shuttle accident can help to demystify logistic regression using the simplest logistic regression – binary logistic regression, where the Y has just two potential outcomes (i.e., “yes” or “no,” or 0 or 1).
The data in Table 1 comes from the Presidential Commission on the Space Shuttle Challenger Accident (1986). The data consists of the number of the flight, the air temperature at the time of the launch and whether or not there was damage to the booster rocket field joints (no = 0, yes = 1).
Table 1: Data from Shuttle Investigation  
Flight 
Temp. 
Damage 
Flight 
Temp. 
Damage 

STS 1 
66 
0 
STS 51A 
67 
0 

STS 2 
70 
1 
STS 51C 
53 
1 

STS 3 
69 
0 
STS 51D 
67 
0 

STS 5 
68 
0 
STS 51B 
75 
0 

STS 6 
67 
0 
STS 51G 
70 
0 

STS 7 
72 
0 
STS 51F 
81 
0 

STS 8 
73 
0 
STS 51I 
76 
0 

STS 9 
70 
0 
STS 51J 
79 
0 

STS 41B 
57 
1 
STS 61A 
75 
1 

STS 41C 
63 
1 
STS 61B 
76 
0 

STS 41D 
70 
1 
STS 61C 
58 
1 
Using normal regression and given a particular temperature at launch time, this data can be used to calculate the probability of damage to the booster rocket field joints.
There are five steps to apply logistics regression.
Step 1. Graphically Visualize the Data
A stratified dot plot can be used to graphically display the data. It is obvious from Figure 2 that the probability of damage is greater at lower temperatures. However, there is quite a fair bit of overlap in the distribution. Is launch temperature a real X (i.e., a real predictor of damage)? And if so, what is the probability of damage for any given launch temperature?
It is obvious that the probability of damage is greater at lower temperatures. However, there is quite a fair bit of overlap in the distribution. Is launch temperature a real X (i.e., a real predictor of damage)? And if so, what is the probability of damage for any given launch temperature?
Step 2. Formulate the Regression Model
Any regression requires a continuous output or Y. However, in this case the Y is discrete with only two categories or two events: Damage – yes or no. What to do? The “trick” behind the logistic regression is to turn the discrete output into a continuous output by calculating the probability (p) for the occurrence of a specific event. That means, the logistic regression provides a model to predict the p for a specific event for Y (here, the damage of booster rocket field joints, p = P[Y=1]) given any value of X (here, the temperature at the time of the launch). The logistic regression equation has the form:
This function is the socalled “logit” function where this regression has its name from. The procedure for modeling a logistic model is determining the actual percentages for an event as a function of the X and finding the best constant and coefficients fitting the different percentages.
This is exactly the equation that comes out of statistical software’s output for logistics regression:
Step 3. Check Validity of Regression Model
There are two major checks that need to be done before it can said with confidence that this model is valid (please refer to the session output):
 Pvalue for the coefficient is less than 0.05.
A pvalue is calculated for each coefficient. If the pvalue is low then there is a significant relationship between the Xvariable and the Y. In this case, the coefficient for temperature has pvalue of 0.032 (i.e., there is a significant relationship between the temperature and the probability of a damage).  Pvalue of the “goodness of fit” tests are greater than 0.05.
Goodnessoffit tests are conducted to see whether the model adequately fits the actual situation. Low pvalues indicate a significant difference of the model from the observed data. Hence, the pvalues should be above 0.05 to show that there are no significant differences between the predicted probabilities (from the model) and the observed probabilities (from the raw data). In this case, from the goodnessoffit tests, none of them show a significant difference – the regression model is valid.
Step 4. Reverse the Logit Equation
This is done to obtain an answer to the question, given a particular setting of X, what is the probability of failure? Reversing this, the result is:
On the day of the Challenger incident, the temperature was 31 degree Fahrenheit. Hence, the probability of damage to the booster rocket field joints on that day is:
Damage was almost a certainty.
Step 5. Visualize the Results (Optional)
The event probability for all the possible temperature settings can be obtained by using statistical software. In Minitab software, for example, one must go to “Storage” and check the “Event Probability” box. The output is illustrated in Table 2.
Table 2: Event Probability  
Flight 
Temp. 
Damage 
EPRO1 

1 
STS 1 
66 
0 
0.430493 
2 
STS 2 
70 
1 
0.229968 
3 
STS 3 
69 
0 
0.273621 
4 
STS 5 
68 
0 
0.322094 
5 
STS 6 
67 
0 
0.374724 
6 
STS 7 
72 
0 
0.158049 
7 
STS 8 
73 
0 
0.129546 
8 
STS 9 
70 
0 
* 
9 
STS 41B 
57 
1 
0.859317 
* are repetitions
Using this data, the scatter plot (decreasing logistic plot) in Figure 2 can be produced.
Using this scatter plot, it is quite easy to do some prediction. For example, if the outside temperature is about 55 degrees F, the probability of getting a damage – or better a leak in the booster rocket – is nearly 90%.

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