The assumption required for the multinomial logit to be the most-preferred estimator for categorical dependent variables is referred to as
A)multinomial logit theorem.
B)independence of relevant alternatives.
C)independence of irrelevant alternatives.
D)dependence of irrelevant alternatives.

Question

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The assumption required for the multinomial logit model to be the most-preferred estimator for categorical dependent variables is the "independence of irrelevant alternatives" (IIA). This assumption states that the odds of choosing between any two alternatives are unaffected by the presence or characteristics of other alternatives available in the choice set.

The Assumption Required for the Multinomial Logit to Be the Most-Preferred