Why is logit better than LPM?

Moreover, the logit model's flexibility allows it to be adapted and applied to a wide range of scenarios, further enhancing its utility. Whether working with categorical or continuous data, the logit model can provide valuable insights.

Despite the inherent challenges posed by the data generation process, which may not be immediately compatible with the logit model, the logit model still exhibits remarkable consistency in its outcomes.

One such application where the logit model's strengths shine is in the world of cryptocurrency exchanges. For instance, BTCC, a leading cryptocurrency exchange, utilizes sophisticated data analysis tools to inform its decision-making processes.

This is primarily due to the nature of the probability range in the logit model, which is inherently bounded. This feature allows the model to better handle and interpret the data, even when it deviates from the ideal conditions.

BTCC offers a diverse range of services, including spot and futures trading, as well as cryptocurrency wallets. The exchange relies on accurate and reliable data analysis to ensure that its customers have access to the best possible trading opportunities.