09 Sep They are able to handle all the same distributions because GLMs , nevertheless they allow for low-linear/non-parametric relationships
Hi Frances - I acknowledge I have not been after the previous literary works with the wealth, but equivalent points develop when you look at the investigation out of medical care expenditures, perhaps even significantly more honestly. Medical care expenditures are a problem from the U.S. as there are a great amount of paperwork into the dealing with a high proportion regarding zeros and you will high skewness about low-no observations in these data. Perhaps not correctly my city, https://datingranking.net/tr/senior-match-inceleme/ however when We be able to remain awake when someone was offering a methodological paper with the wellness costs I gather one limited mixtures try best nowadays, followed by double hurdle and other alternatives-type habits. GLM steps are very common, that's uncommon within the econometrics.
Chris: I would personally a bit joyfully concur that normality and you can heteroskedasticity aren't the latest genuine issues with OLS most of the time; your own rates could be approximately right, and you will objective, provided the genuine dating was linear
but not, I would personally say if you're shopping for inference in the beliefs close zero, zero level of data'll save throughout the undeniable fact that "my personal model is actually anticipating negative ten-thousand dollars out-of wide range of these anyone, while they are indeed at no."