A logit model can be estimated with the method of ________.
A) ordinary standard least squares
B) maximum likelihood estimation
C) nonparametric estimation
D) none of these choices are correct

Question

Quizplus · Accepted Answer

Maximum likelihood estimation is the appropriate method to estimate a logit model as it allows for the calculation of the likelihood function and the maximum likelihood estimates of the model's parameters. Ordinary least squares cannot be used for a logit model as the dependent variable is binary and violates the assumptions of linear regression. Nonparametric estimation methods do not specify a functional form for the model and are not well-suited for logistic regression modeling.

A Logit Model Can Be Estimated with the Method of ________