The primary difference between the probit and logit model is the:
A) probit model uses a latent variable convention that the logit model does not.
B) probit model suffers from a heteroscedasticity problem while the logit does not.
C) choice of distribution for the unobservables.
D) probit model identifies causal effects, while the logit model identifies correlations.

Question

Quizplus · Accepted Answer

The primary difference between the probit and logit model is the choice of distribution for the unobservables. The probit model assumes a normal distribution, while the logit model assumes a logistic distribution. This difference can result in different predicted probabilities for the same values of the explanatory variables.

The Primary Difference Between the Probit and Logit Model Is