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Basic Question 1 of 4

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.

User Contributed Comments 1

User Comment
danlan2 Understand the features of logit models.
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I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu

Edward Liu

Learning Outcome Statements

calculate and evaluate the predicted trend value for a time series, modeled as either a linear trend or a log-linear trend, given the estimated trend coefficients;

describe factors that determine whether a linear or a log-linear trend should be used with a particular time series and evaluate limitations of trend models;

explain the requirement for a time series to be covariance stationary and describe the significance of a series that is not stationary;

CFA® 2025 Level II Curriculum, Volume 1, Module 4.