One can test this assumption by computing conditional probabilities that sons will graduate from college for each level of formal educational attainment by fathers. What typically occurs in such cases is that, while an increase in probability will occur with each successive level of the independent variable, that increase will not be constant, i.e., the increase will not be linear.
Linearity could be restored the conditional probabilities by converting the probabilities to normal variates for points on the normal curve where such probabilities occur. In other words, the conditional probabilities would be converted to z scores. This procedure is called "probit analysis." Transformation of the conditional probabilities through logit analysis, however, yields comparable results with much less effort expended. In logit analysis, the conditional probabilities are transformed into variates for points on the logistic curve where such probabilities occur. The logit transformation procedure converts conditional probabilities to natural logarithmic values. Through the application of logit transformation, the linearity of the relationship between the independent and the dependent variables is restored.
Logit transformation, thus, is a procedure through which a linear relationship can be derived between a linear independent variable and dichotomous dependent variables for which an assumption may be made that a linear relationship should exist between the dichotomous and the linear variable. The logit regression procedure based on the logit transformation of the conditional probabilities of dichotomous outcomes at progressive values of an independent variable provides a predictive outcome with less expenditure of effort that is nevertheless comparable to that attainable though probit transformation. Appropriate Applications for Logit Regression
The application of the logit regression procedure is most ...
What Is Logit Regression?. (2000, January 01). In LotsofEssays.com. Retrieved 11:12, October 30, 2014, from http://www.collegetermpapers.com/viewpaper/1304269538.html