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Re: st: comparing nested models


From   Neil Shephard <nshephard@gmail.com>
To   statalist@hsphsun2.harvard.edu
Subject   Re: st: comparing nested models
Date   Thu, 3 Feb 2011 16:36:11 +0000

On Thu, Feb 3, 2011 at 4:09 PM, Nikolas Asasa <lenta2008@yahoo.com> wrote:
> Dear All,
> I have two models aiming to estimate effect of age on wage. In the first model age is recorded in 5 categories. In the second model age is recorded in 10 categories.
> The question is how to compare goodness of fit of two models?
>
> In principle I would apply F-test, but I am not sure whether "test" procedure in Stata allows me to do it? Should I use ANOVA instead?

If you have the actual age of individuals would you not get the best
fit by simply using all of the information on age and wage...

wage = a*age + b

...under a linear regression?

There are many, many reasons why you shouldn't classify continuous
variables into categorical.  Frank Harrell's page somes many of these
up nicely http://biostat.mc.vanderbilt.edu/wiki/Main/CatContinuous

Neil

-- 
“Truth in science can be defined as the working hypothesis best suited
to open the way to the next better one.” - Konrad Lorenz

Email - nshephard@gmail.com
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