What is "logit model"?

Logit model (also translated as "evaluation model", "classification evaluation model", also known as Logistic regression, "logistic regression") is one of the discrete choice models, Logit model is the earliest discrete choice model is also the most widely used model. "Logit model is one of the discrete choice models, Logit model is the earliest discrete choice model, is also the most widely used model.

It is a commonly used method for statistical empirical analysis in sociology, biostatistics, clinical, quantitative psychology, econometrics, marketing, etc. Logit model is the earliest discrete choice model and the most widely used model at present.Logit model was first derived by Luce (1959) based on the characteristics of IIA; Marschark (1960) proved that Logit model is consistent with the theory of maximum utility.

The reason for the wide applicability of the Logit model is mainly due to the explicit character of its probabilistic expressions, the speed of the model's solution and the ease of its application.

Extension

According to the IIA property of the Logit model, the decrease or increase of the selection branch does not affect the magnitude of the ratio of the probability of being selected between each of the other choices, so the selection branch that needs to be removed can be directly removed from the model, and the new selection branch can be added to the model and used directly for prediction.

Unlike probability, a very important property of Logit is that it has no upper or lower bounds - which makes modeling extremely convenient.

Logit model can to some extent overcome the model after the event to predict the defects of the ex ante event, integrated FR model in the FR probability analysis method and KLR model in the signal analysis method of the advantages, but it is only in the interest rate, exchange rate, and several other major financial assets or economic indicators on the basis of early warning of speculative shocks to currency crises, and the general currency crisis early warning and there are still some differences.

Baidu Encyclopedia-Logit Model