A policy analyst conducts a logistic regression to predict whether a household will fall into poverty (yes/no). Why is logistic regression preferred over ordinary least squares (OLS) in this case?
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A
Logistic regression handles larger datasets better than OLS
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B
OLS can produce predicted probabilities outside the 0–1 range for binary outcomes
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C
Logistic regression does not require any assumptions
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D
OLS cannot handle categorical independent variables