The Logit Model:
Setting F(xiβ) to be the logistic distribution, in the regression approach (used in many analyses), gives rise to the logit model. Similarly, in the latent regression ap roach, assuming that E, follows a logistic distribution, with known variance (Π2/3), conditional on q, will give rise to the logit model. The logistic distribution function is given by '.
An interesting property of the logistic distribution is that its probability density function,
The expressions in (12.2), (12.14) and (12.16) may be written as,'
dividing both numerator and denominator by e-xiβ we have