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st: RE: RE: A continuous DV between 0 and 1


From   "Nick Cox" <n.j.cox@durham.ac.uk>
To   <statalist@hsphsun2.harvard.edu>
Subject   st: RE: RE: A continuous DV between 0 and 1
Date   Fri, 8 Oct 2004 10:51:51 +0100

I disagree here on two standard grounds. 

* OLS is all too likely to produce predictions 
outside [0,1]. 

* To degrade an approximately 
continuous variable by categorising it in this 
way is just throwing away information in the 
data. 

Other postings pointed to possible analyses. 

Nick 
n.j.cox@durham.ac.uk 

Carter Rees, M.A. 
 
> I would think that if it is a ratio variable an OLS 
> regression would suffice.  OLS is pretty robust when it comes 
> to its assumptions so the S shape may not be a problem.  
> However, your definition of "somewhat" S shaped has to be 
> considered.  If it is truly an S-shaped (binomial) 
> distribution you should check to see if you can identify a 
> logical cut point and turn your DV into a categorical 0/1 
> variable and run a logistic regression.  If not a simple 0/1, 
> maybe multinomial or ordinal regression would be the way to 
> go.  In any event, if you do decide on a categorical DV check 
> out Scott Long's Regression Models for Categorical Dependent 
> Variables Using Stata.

 ________________________________________
Eugene Kang
 
> I am using STATA 8 to analyze a model with a ratio DV ranging 
> from 0 to 1. The distribution of this DV is somewhat 
> S-shaped. I was wondering if someone could point me to the 
> correct statistical analysis to use (I can read the STATA 
> manual and other books from there on). 

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