From the course: Introduction to Stata 15
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Multinomial logit - Stata Tutorial
From the course: Introduction to Stata 15
Multinomial logit
- [Instructor] When a dependent variable has more than two integer categories, and we cannot order these in a meaningful way, we call these dependent variables unordered or nominal dependent variables. Examples include voting behavior, for example, do you prefer party A, B, or C? Or mode of transportation, do you prefer to take the bus, car, or train? There are many examples of unordered choices, and to estimate these kind of models, we often use the multinomial logit model. However, you should be aware that the multinomial logit model tends to produce a lot of output, and interpreting this output is a little more complex than some of the previous models we've looked at. In addition, these models work very poorly with small samples, which is something we'll see later. You need good data and big cells to get something useful out of this modeling approach. And finally, the multinomial logit model comes with something called the independence of irrelevant alternatives assumption, often…
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