General Studies · Econometrics
Which of the following characteristics primarily distinguishes a logit model from a probit model?
- 1The error term in logit follows a logistic distribution rather than a normal distribution✓
- 2The presence of structural heteroskedasticity in the model
- 3The non-linear functional form of the specification
- 4The requirement of a binary dependent variable
Correct answer
The error term in logit follows a logistic distribution rather than a normal distribution
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