I ran a logistic regression on a dataset with two variables. Variable 1 (independent, discrete variable) Variable 2 (dependent, 2-option categorical variable)
I ran this code in R -
ggplot(dataset, aes(x=ind_variable, y=dependent_variable)) +
geom_point() +
stat_smooth(method="glm", method.args=list(family="binomial"), se=FALSE)
This is what I got -
The y axis shows the dependent variable (which has two possible outcomes: 0 and 1). What is the right way to understand the areas between 0 and 1?
My understanding is it is a probability of converting, that when the curve is at .25, then it means that about 50 of the independent variable predicts a 25% change of the outcome occurring.
Is that right?
Logistic regression gives you values in $(0,1)$, only at $\pm \infty $ it reaches $0$ or $1$. Hence, the interpretation is the same as at any other point, i.e., it is the estimated probability of $\{Y=1\}$ given this specific value of $x_0$ (and perhaps some dummy variables).