Catch No Ball
Let's see. So here's the formula:
Log odds (Y) = β0 + β1X1 + β2X2 + β3X3 + βkXk + u
And we have to bear in mind that the dependent variable need not be normally distributed but its assumed distribution is within the range of the exponential family, and also that the relationship between X and Y is not linear and that there is no multicollinearity... and what about the issue of homoscedasticity versus hetroscedasticity, when we apply logit? And do we express the coefficients later as log odds or odds/ratio???
This is typically the point at which I get ready to hurl myself out of the window.
Log odds (Y) = β0 + β1X1 + β2X2 + β3X3 + βkXk + u
And we have to bear in mind that the dependent variable need not be normally distributed but its assumed distribution is within the range of the exponential family, and also that the relationship between X and Y is not linear and that there is no multicollinearity... and what about the issue of homoscedasticity versus hetroscedasticity, when we apply logit? And do we express the coefficients later as log odds or odds/ratio???
This is typically the point at which I get ready to hurl myself out of the window.
15 Comments:
don't we all just love our regressions... i've been pretty much cursing under my breath for the past 10 weeks each time i have to read the @#%! economics papers...
Don't be put off by the Greek letters and long formulas lah.
Try a different approach, instead of all the individual variables, look at what the model is trying to explain, e.g. CAPM, stock market returns.
Or look at impact of data problems like multicollinearity, which will make t-stats unrealiable due to the variance inflation effect.
Or how to detect data disturbances, e.g. test for heteroscedasticity using Lagrange multiplier test.
Talk to you more online later when I'm off my offline diet.
Cheam ... blur ... prefer lovely photos of sights & food :) DH
This post was a total abberation. I hope very soon to resume my accounts of food, travelling, food, entertainment and food.
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