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The Logit Model: Estimation, Testing and Interpretation

The Logit Model: Estimation, Testing and Interpretation

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2 Motivation for maximum likelihood esti-mation A more formal motivation for ML estimation is based on the fact that for 0 <x<1 and x>1, ln(x) <x−1. This is illustrated in the following picture: 1How to draw such a sample is beyond the scope of this lecture note. 5

  Model, Testing, Site, Interpretation, Maximum, Estimation, Mation, Likelihood, Testing and interpretation, Maximum likelihood esti mation

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