Exercise 4.1

Writing Y=\beta_0 + \beta_1 X for clarity, we start with

\begin{align} P(X) & = \frac{e^Y}{1+e^Y}, \end{align}

and "using a little bit of algebra", we get

\begin{align} \frac{P(X)}{1-P(X)} & = \frac{e^Y}{1+e^Y} \left( 1 - \frac{e^Y}{1+e^Y} \right)^{-1} = \left( \frac{(1+e^Y)-e^Y}{1+e^Y} \right)^{-1} = \frac{e^Y}{1+e^Y} \frac{1+e^Y}{1} = e^Y = e^{\beta_0 + \beta_1 X}. \end{align}