How are logit and probit models different?
A)probit is estimated by least squares,logit by maximum likelihood
B)probit uses the cumulative density function (cdf)of the standard normal distribution and logit uses the cdf of the logistic function
C)logit is for binary choice models and probit is used when there are two or more choices
D)probit allows for endogenous regressors,logit does not

Question

Quizplus · Accepted Answer

The main difference between logit and probit models is the choice of cumulative distribution function used to link the linear regression equation to the probability of the event occurring. Probit uses the cumulative density function (cdf) of the standard normal distribution, while logit uses the cdf of the logistic function.

How Are Logit and Probit Models Different