Questions tagged [duan-smearing]

I'm running a two-part model on a health insurance claims dataset where I predict the probability of nonzero health care costs using a logistic regression (1st part), then predict the magnitude of the log health care costs using an OLS regression…

I am building a cost model with cubic root transformation of the cost. Hence dependent variable is (cost)^(1/3). Now, am at a stage where i need to re-transform the predicted value to the actual cost. But while re-transforming, i have read that we…

I'm modeling a fixed effects (within) panel regression for a fractional dependent variable (DV) bounded between 0 and 1. My aim is to model the relationship so that I can predict the frational DV on its original scale. The relationship between a…

I have a fitted linear regression of a Box-Cox transformed dependent variable, using an indicator variable as one of the two predictors : $$ g(Q, \lambda) = \hat{\beta_0} + \hat{\beta_1}P+ \hat{\beta_2}I +\epsilon = f(P,I) +\epsilon $$ This…