I am doing a multinomial regression and trying to interpret the results: In the basic model there is only one binary predictor variable (0 = high risk scenario, 1 = low risk scenario), the dependent variable has 3 categories (strategy 1,2 or 3).
The output shows that the model is significant and most of the logits as well. However, I am wondering how to interpret the (significant) logits of the intercepts. This is how I am interpreting it: "The likelihood to choose strategy 1 over 2 in a risk-free scenario (the intercept?) is higher/lower, keeping the rest constant." It this the correct way to interpret it?
Thanks in advance.
Best Answer
In a multinomial logistic regression with 3 levels of the DV there ought to be two intercepts. How exactly these are defined depends on which is the reference level. These will be the value of the logit when the independent variables are 0, in your case, when risk is high.
I wrote a presentation on multinomial and ordinal logistic regression; it somewhat concentrated on SAS, but some may be useful even if you are using another package.