Skip to Main Content
Decision Based Design
book

Decision Based Design

by Vijitashwa Pandey
August 2013
Intermediate to advanced content levelIntermediate to advanced
284 pages
11h 23m
English
CRC Press
Content preview from Decision Based Design
241Demand Modeling
which is a relatively simple expression for the probability that the kth cus-
tomer will prefer option i over the other alternatives. Notice that the sum
P
j
ki
Σ
equals 1. This is to be expected because all customers are required to
choose one (exhaustive) and only one (mutually exclusive) option. Before we
solve an example problem to show how logit is used in practice, we discuss
the results obtained so far.
8.3.1.2 Properties of the Logit Model
There are some properties of the logit model directly evident from the choice
probability expression. The choice probabilities lie between 0 and 1, as one
would expect for a probabilit
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Start your free trial

You might also like

Lean Branding

Lean Branding

Laura Busche
A Structured Approach to Strategic Decisions

A Structured Approach to Strategic Decisions

Daniel Kahneman, Dan Lovallo, Olivier Sibony, Andrew Torrance, Christiana von Hippel

Publisher Resources

ISBN: 9781439882320