 Solution

For independent random variables $Y_i\sim \mathrm{Bernoulli}(p_i)$, the full logistic regression has linear predictorLayout A is the reference level in a regression factor. The smaller model sets ${\beta }_B={\beta }_C=0$, leaving the same logit link and the price predictor. In either caseThe saturated statistical model allows a separate probability per observation; its maximizing probabilities are $p_i=y_i$, with log-likelihood zero under $0\log 0=0$. Hence the binomial deviance for either fitted model isEquivalently, write the summands as $2[y_i\log (y_i/{\hat{p}}_i)+(1-y_i)\log ((1-y_i)/(1-{\hat{p}}_i))]$. The fitted probabilities differ between the two models, but the definition of binomial deviance is the same. A residual deviance for individual binary data need not itself have an accurate chi-squared distribution approximation; the nested-model difference used next has a different asymptotic justification.