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

Dec 5, 2014

Because of the decision boundary

Anonymous

Feb 28, 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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