- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 4. Extensions of Multiple Regression
- Subject 3. Logistic Regression Model
CFA Practice Question
Which of the following statements is (are) false concerning logit models? Choose the best answer.
B. The output of a logit model will be a Chi-squared random variable with k degrees of freedom.
C. Logit models gained popularity when computing power was expensive.
A. Logit models are based on the logistic distribution. They are utilized for regressions featuring a qualitative dependent variable.
B. The output of a logit model will be a Chi-squared random variable with k degrees of freedom.
C. Logit models gained popularity when computing power was expensive.
Correct Answer: B
The output of a logit model will not be a Chi-squared random variable with k degrees of freedom. Rather, the output of a logit model will be a simple probability bound by zero and one, respectively.
User Contributed Comments 1
| User | Comment |
|---|---|
| danlan2 | Understand the features of logit models. |