Re: Ratio as a response variable



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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