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Why not just fit a linear regression for a binary label (linear probability model)?

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Answer

  • You can — sometimes it even works reasonably as a quick baseline — but three problems bite in practice: (1) predicted probabilities aren't bounded to [0, 1]; (2) errors are heteroscedastic (variance = p(1-p) depends on x), so OLS standard errors are wrong; (3) it isn't the MLE for Bernoulli data.
  • Logistic regression fixes all three via the sigmoid link and the Bernoulli likelihood — that's why it's the default.
Check yourself — multiple choice
  • The linear probability model is the MLE for Bernoulli data
  • Predictions leak outside [0, 1], errors are heteroscedastic, and it's not the Bernoulli MLE
  • It only fails on multi-class
  • It's always more accurate than logistic regression

LPM: unbounded probs + heteroscedastic errors + not MLE ⇒ prefer logistic regression.

#logistic-regression#linear-regression#theory

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