CFA Practice Question

There are 208 practice questions for this study session.

CFA Practice Question

Which of the following statements is (are) false concerning logit models? Choose the best answer.

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.

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danlan2 Understand the features of logit models.
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