Explain the central idea behind the multinomial logit model. What the underlying assumptions in this model?

Introduction The Multinomial Logit Model (MNL) is an extension of the binary logit model used in econometrics when the dependent variable has more than two unordered categories. It is frequently applied in modeling individual choices among multiple discrete alternatives, such as choosing between different brands, modes of transportation, or political parties. Central Idea Behind the […]

Explain the central idea behind the multinomial logit model. What the underlying assumptions in this model? Read More »