Google Interview Question: Why we can not use linear regression for dependent variable with binary outcomes

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Statistician Interview

Why we can not use linear regression for dependent variable with binary outcomes

Interview Answers

Anonymous

5 Dec 2014

Because of the decision boundary

Anonymous

28 Feb 2018

Because linear regression produces values beyond the range [0,1], and also because the underlying assumptions of equal and normally distributed error terms will be violated (errors will be distributed binary instead)

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