Themeblock 2. Discrete Choice Models

4 important questions on Themeblock 2. Discrete Choice Models

What are Discrete Choice Models

Regression models that predict the chance that a person chooses a discrete alternative based on his characteristics

Which three criteria do these alternatives have to meet:

Exhaustive, exclusive, not too large

Name two forms of discrete choice models

Logistic regression, multinominal logit regression
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Testing model fit (the likelihood ratio test)

Chi-squared test (the difference between the complete model and a model with only the constant term)

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