Re: Ratio as a response variable
- From: Philip A. Viton <viton.1@xxxxxxx>
- Date: Mon, 13 Aug 2007 11:19:17 -0400
In article <1186679781.417116.288320@xxxxxxxxxxxxxxxxxxxxxxxxxxxx>,
heath@xxxxxxxxxxxxxxxx says...
On Aug 9, 11:47 am, jonesor <owen.jo...@xxxxxxxxxxxxxx> wrote:
Hi,
Can someone please outline what the problems are with using a ratio as a response variable in a regression model.
I know there are problems with using a ratio who's denominator is also an explanatory variable but what are the issues if the denominator is NOT among the explanatory variables?
What do you call a variable that is neither an explanatory nor
a response variable?
Hope this helps.
Greg
I suspect that the OP meant an lhs variable that is a proportion, ie
between zero and one. If so, then one standard problem in a regression
context is that you can't guarantee that, once you've estimated the
regression coefficients, that x'b-hat (ie, your estimated predictor of
the lhs) is between zero and one, which makes interpretation somewhat
problematic.
--
Phil Viton
Ohio State University
.
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