Choosing a Link Function

  1. To choose a link function, it is helpful to examine the distribution of values for the outcome variable. To create a bar chart for Account status, from the menus choose:

    Graphs > Chart Builder...

    Figure 1. Chart Builder
    Chart Builder
  2. Select the Bar gallery and choose Simple Bar.
  3. In the Element Properties tab, select Percentage as the statistic in the Statistics group.
  4. Select Account status as the variable to plot on the category axis.
  5. Click OK.
Figure 2. Distribution of values for Account status
Distribution of values for Account status

The resulting bar chart shows the distribution for the account status categories. The bulk of cases are in the higher categories, especially categories 3 (payments current) and 5 (critical account). The higher categories are also where most of the "action" is, since the most important distinctions from a business perspective are between categories 3, 4, and 5. For this reason, you will begin with the complementary log-log link function, since that function focuses on the higher outcome categories. The high number of cases in the extreme category 5 (critical account) indicates that the Cauchit distribution might be a reasonable alternative.

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