Dear Stata Users and Abusers,
In general, is it kosher to use a z-score as a dependent variable in a
linear regression? Is it "better" to use some sort of ratio
measurement?
I've reviewed the assumptions of OLS, etc., and I can't find a glaring
objection to using a z-score as a dependent variable in a linear
regression. However, it feels strange, especially because the units
of a z-score are not uniform, in that the difference in probability
between a z-scores 0 and .5 is not the same as the difference in
probability beween z-scores .5 and 1. In other words, I feel that by
using the z-score, I am not giving adequate weight to observations
with very high and very low z-scores.
Why not use the underlying measurement that was used to derive
z-score, you ask? Each individual has a unique baseline and
variation, so in order to compare individual responses to my stimuli,
I need to put everybody on the same scale.
Any feedback or direction to reading material would be helpful.
Thank you,
Dan
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