Question: When we estimate the parameters of the multinomial logit model. we use what is called maximum likelihood estimation. Often times, people maximize log-likelihood instead of

 When we estimate the parameters of the multinomial logit model. we

When we estimate the parameters of the multinomial logit model. we use what is called maximum likelihood estimation. Often times, people maximize log-likelihood instead of the likelihood itself. Which of the following is NOT a correct statement regarding this method? 0 Log-likelihood maximization yields the same optimal parameters as likelihood maximization. In other words: arg maxp log (I: (p)) = arg maxp (11 (p)) O The reason log-likelihood maximization and likelihood maximization yield the same optimal parameter is because logarithm is a monotonic increasing function. O From a computing complexity point of View, handling log-likelihood is often easier than handling likelihood since likelihood could become very small. O In the case of the multinomial logit model, we use log-likelihood instead of likelihood to get an expression which is always linear in x

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