I'm running a multinomial logistic regression on 8 independent variables for 180 observations in Stata (version 11). The dependent variable is categorical with 7 outcome categories, categories 1-6 (solving strategies for a household with a resource conflict) and category 0 (no solving strategy because the household doesn't encounter any resource conflicts).
I was advised to exclude the observations of category 0. My questions are
- what happens, if I keep the sample as it is - will my regression results be biased?
- what the trade-off between selection/sample bias and data exclusion is, because in the latter case, the sample will be reduced more than half.
- if a simple way around sequential/nested logit (nlogit)exists, as a solution to this problem (I tried it but I guess it exceeds my Stata skills and my expectations on the this estimation).