Generalized Linear Models
(GLMs)
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Introduction to GLMs
Generalized Linear Models (GLMs) significantly extend traditional
regression by allowing response variables to follow various
distributions from the exponential family (e.g., Poisson, Binomial),
utilizing a link function to transform the expected value. First
formalized in the early 1970s, GLMs provide a unified approach for
diverse data types, making them indispensable in fields such as public
health, marketing analytics, finance and insurance, and ecological
research.
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Presentation Objectives
Core GLM Key GLM Types & GLM vs. Linear Real-World
Components Applications Regression Applications
Identify the three Explore common Understand how GLMs Discover practical examples
fundamental elements: the distributions such as extend linear models to of GLM utility in diverse
random component, Logistic, Poisson, and handle non-normal fields like public health,
systematic component, and Gamma regression, and response variables and finance, and marketing
link function. their appropriate use cases. various error structures. analytics.
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Components of GLMs
Random Component Systematic Component Link Function
Specifies the probability Represents the linear predictor, The link function, g(\cdot),
distribution of the response \eta, as a linear combination of connects the expected value of
variable (Y) from the exponential explanatory variables (X_i) and the response variable, E[Y], to the
family. Common examples include their coefficients (\beta_i): \eta = linear predictor \eta: g(E[Y]) =
Normal (continuous), Binomial \beta_0 + \beta_1 X_1 + ... + \eta. Examples include logit for
(binary/proportional), and \beta_p X_p. Binomial and log for Poisson data.
Poisson (count) distributions.
These three components provide GLMs with the flexibility to model diverse data types beyond standard linear regression.
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Key Types of GLMs
Linear Regression Logistic Regression Poisson Regression
• Distribution: Normal • Distribution: Binomial • Distribution: Poisson
• Link Function: Identity (g(\mu) = • Link Function: Logit (g(\mu) = • Link Function: Log (g(\mu) =
\mu) \ln(\frac{\mu}{1-\mu})) \ln(\mu))
• Use: Continuous outcomes. • Use: Binary outcomes (e.g., • Use: Count data (e.g., number of
success/failure). events).
Each type is specifically designed to handle different kinds of response variables.
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Real-World Use Cases
Disease Prediction Spam Detection Count Data Modeling
Logistic regression predicts disease Logistic regression classifies emails as Poisson regression analyzes the
presence based on patient spam or not spam based on content. frequency of events, like customer
characteristics. arrivals.
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GLMs vs. Linear Regression
Feature Linear Regression GLMs
Response Variable Continuous, normally distributed Various distributions (e.g., Poisson,
Binomial, Gamma)
Assumptions Normality, homoscedasticity, linearity Less restrictive; assumes link function
of parameters correctly specified
Flexibility Limited to normal errors and linear Highly flexible for diverse data types
relationships
GLMs offer a broader framework to model data that don't fit the strict assumptions of traditional linear regression.
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Advantages of GLMs
Adaptability Flexibility
Handles various data types (counts, proportions, Allows for non-linear relationships between predictors
continuous) without complex transformations. and the response through link functions.
Interpretability Real-World Utility
Parameters are easily interpretable, often as odds Widely used in fields like epidemiology, ecology, and
ratios or rate ratios, depending on the link function. actuarial science for robust modeling.
GLMs provide a robust statistical framework for addressing complex research questions.
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Conclusion
Generalized Linear Models (GLMs) significantly extend traditional
linear regression, offering a powerful and flexible framework. By
utilizing distributions from the exponential family (e.g., Binomial for
binary outcomes, Poisson for count data) and specific link
functions, GLMs enable robust analysis across diverse data types.
This framework provides unparalleled adaptability, flexibility for
non-linear relationships, and enhanced interpretability.
Consequently, GLMs are indispensable tools in modern data
science, driving critical insights in fields like public health,
marketing analytics, ecological research, and finance, ensuring a
more accurate understanding of complex phenomena.
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Thank You!
Questions?
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