Multinomial Logit Model

The Multinomial Logit Model is a statistical method used to analyze choices where there are multiple options. Imagine you’re trying to decide between several brands of cereal. This model helps predict which brand someone is likely to choose based on different factors, such as price, taste, and packaging. It does this by estimating the probability of each choice rather than just yes or no. By understanding these probabilities, businesses and researchers can gain insights into consumer preferences and behavior across various categories, helping them make informed decisions.