The Logit Model Assumes What Sort of Distribution for the Unobservables

question 36

Multiple Choice

The logit model assumes what sort of distribution for the unobservables?

• A) Standard normal distribution
• B) T-distribution
• C) Logistic distribution
• D) Exponential distribution

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Definitions:

Appreciate

In economic terms, an increase in the value of an asset or currency.

International Value

The worth or significance of goods, services, assets, or currencies when evaluated on a global scale or in more than one country.

Foreign Exchange Market

An international exchange system where national currencies are swapped against each other.

Selling Currency

The act of exchanging one's own country's currency for another currency, which can influence exchange rates and is a key aspect of foreign exchange markets.