Example: tourism industry
12 Probit and Logit - Amine Ouazad
Probit vs Logit" • Probit: the residual is normally distributed, with variance 1." • Variance is fixed, more on this later." • F(x) is the integral of the normal distribution." • Logit: the residual has a logistic distribution." • F(x) = e x/(1+e )." • Choice of one versus the other makes little practical difference (and should
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