Ridge-Type Shrinkage Estimators in Low and High Dimensional Beta Regression Model with Application in Econometrics and Medicine

11/27/2021
by   Ejaz Ahmed, et al.
0

Beta regression model is useful in the analysis of bounded continuous outcomes such as proportions. It is well known that for any regression model, the presence of multicollinearity leads to poor performance of the maximum likelihood estimators. The ridge type estimators have been proposed to alleviate the adverse effects of the multicollinearity. Furthermore, when some of the predictors have insignificant or weak effects on the outcomes, it is desired to recover as much information as possible from these predictors instead of discarding them all together. In this paper we proposed ridge type shrinkage estimators for the low and high dimensional beta regression model, which address the above two issues simultaneously. We compute the biases and variances of the proposed estimators in closed forms and use Monte Carlo simulations to evaluate their performances. The results show that, both in low and high dimensional data, the performance of the proposed estimators are superior to ridge estimators that discard weak or insignificant predictors. We conclude this paper by applying the proposed methods for two real data from econometric and medicine.

READ FULL TEXT

page 8

page 9

page 10

page 15

research
10/26/2019

Ridge-type Linear Shrinkage Estimation of the Matrix Mean of High-dimensional Normal Distribution

The estimation of the mean matrix of the multivariate normal distributio...
research
08/18/2021

A Model for Bimodal Rates and Proportions

The beta model is the most important distribution for fitting data with ...
research
09/22/2022

Robust beta regression through the logit transformation

Beta regression models are employed to model continuous response variabl...
research
12/20/2022

A marginalized three-part interrupted time series regression model for proportional data

Interrupted time series (ITS) is often used to evaluate the effectivenes...
research
03/09/2023

Inequality Restricted Estimator for Gamma Regression: Bayesian approach as a solution to the Multicollinearity

In this paper, we consider the multicollinearity problem in the gamma re...
research
09/10/2022

Unsupervised Liu-type Shrinkage Estimators for Mixture of Regression Models

In many applications (e.g., medical studies), the population of interest...
research
04/04/2018

Beta regression control chart for monitoring fractions and proportions

Regression control charts are usually used to monitor variables of inter...

Please sign up or login with your details

Forgot password? Click here to reset