Binary classification problems are one of the most encountered in business analytics. Make no mistake, you are learning a valuable skill in this course!

Technically speaking, the second curve on this slide is known as the logistic function or logistic curve. This S-shaped curve has the very useful property that the values on the curve approach, but never take on the the values of 1 and 0.

Additionally, as will be covered in the next section, the values produced by the logistic function are interpreted as the probability (i.e., the percentage chance) of something happening.

Interesting Links:

• Logistic function