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From: Aj on 18 Feb 2010 02:53
Hi

Can someone derive or explain the formula for PDO, points to double
odds ?
As per my understanding :
ln(p/1-p) = y
p/(1-p) = exp(y).---(1)
Now say, this should be doubled

ln(p/1-p) = y'' such that
2( p/(1-p) ) = exp(y''). --- (2)

Dividing (2) by (1)

2 = exp(y'') /exp(y)

ln(2) = y''-y

I have been able to derive uptill this point.
Now how do I know whether , to divide this by 20 or 40 or 50.

Thanks
Aj

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