The application of two stage robust weighted least squares and robust bootstrapping procedure on food expenditure data.

This paper analysed a real data set that were obtained from a simple random sampling of Faculty of Sciences staffs in Universiti Putra Malaysia. It represents the relationship between total food expenditure (response variable) and monthly income (independent variable). This data set has been extensi...

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Main Authors: Midi , Habshah, Rana, Md. Sohel, Mat Said, Nur Afzan
Format: Article
Language:English
English
Published: Ijamas Ceser Publication 2011
Online Access:http://psasir.upm.edu.my/id/eprint/24989/
http://psasir.upm.edu.my/id/eprint/24989/1/The%20application%20of%20two%20stage%20robust%20weighted%20least%20squares%20and%20robust%20bootstrapping%20procedure%20on%20food%20expenditure%20data.pdf
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author Midi , Habshah
Rana, Md. Sohel
Mat Said, Nur Afzan
author_facet Midi , Habshah
Rana, Md. Sohel
Mat Said, Nur Afzan
author_sort Midi , Habshah
building UPM Institutional Repository
collection Online Access
description This paper analysed a real data set that were obtained from a simple random sampling of Faculty of Sciences staffs in Universiti Putra Malaysia. It represents the relationship between total food expenditure (response variable) and monthly income (independent variable). This data set has been extensively analysed and found to have outliers and also heteroscedastic problems. The Ordinary Least Squares (OLS) method is not appropriate to analyse this data because the homogeneity of error variances (homoscedasticity) which is one of the important assumption in linear regression is not met. The commonly used Weighted Least Squares (WLS) method to remedy the heteroscedastic problem is also not appropriate as the WLS estimators are easily affected by a few atypical observations that we often call outliers. In this paper we have used Two Stage Robust Weighted Least Squares (TSRWLS) and bootstrapping method to analyse the food expenditure data. The results of the study indicate that the TSRWLS method is more efficient than the OLS, the WLS, and the other existing methods.
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spelling upm-249892015-10-20T06:21:01Z http://psasir.upm.edu.my/id/eprint/24989/ The application of two stage robust weighted least squares and robust bootstrapping procedure on food expenditure data. Midi , Habshah Rana, Md. Sohel Mat Said, Nur Afzan This paper analysed a real data set that were obtained from a simple random sampling of Faculty of Sciences staffs in Universiti Putra Malaysia. It represents the relationship between total food expenditure (response variable) and monthly income (independent variable). This data set has been extensively analysed and found to have outliers and also heteroscedastic problems. The Ordinary Least Squares (OLS) method is not appropriate to analyse this data because the homogeneity of error variances (homoscedasticity) which is one of the important assumption in linear regression is not met. The commonly used Weighted Least Squares (WLS) method to remedy the heteroscedastic problem is also not appropriate as the WLS estimators are easily affected by a few atypical observations that we often call outliers. In this paper we have used Two Stage Robust Weighted Least Squares (TSRWLS) and bootstrapping method to analyse the food expenditure data. The results of the study indicate that the TSRWLS method is more efficient than the OLS, the WLS, and the other existing methods. Ijamas Ceser Publication 2011 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/24989/1/The%20application%20of%20two%20stage%20robust%20weighted%20least%20squares%20and%20robust%20bootstrapping%20procedure%20on%20food%20expenditure%20data.pdf Midi , Habshah and Rana, Md. Sohel and Mat Said, Nur Afzan (2011) The application of two stage robust weighted least squares and robust bootstrapping procedure on food expenditure data. International Journal of Applied Mathematics and Statistics, 20 (11). pp. 25-37. ISSN 0973-1377 http://www.ceser.in/ijamas.html English
spellingShingle Midi , Habshah
Rana, Md. Sohel
Mat Said, Nur Afzan
The application of two stage robust weighted least squares and robust bootstrapping procedure on food expenditure data.
title The application of two stage robust weighted least squares and robust bootstrapping procedure on food expenditure data.
title_full The application of two stage robust weighted least squares and robust bootstrapping procedure on food expenditure data.
title_fullStr The application of two stage robust weighted least squares and robust bootstrapping procedure on food expenditure data.
title_full_unstemmed The application of two stage robust weighted least squares and robust bootstrapping procedure on food expenditure data.
title_short The application of two stage robust weighted least squares and robust bootstrapping procedure on food expenditure data.
title_sort application of two stage robust weighted least squares and robust bootstrapping procedure on food expenditure data.
url http://psasir.upm.edu.my/id/eprint/24989/
http://psasir.upm.edu.my/id/eprint/24989/
http://psasir.upm.edu.my/id/eprint/24989/1/The%20application%20of%20two%20stage%20robust%20weighted%20least%20squares%20and%20robust%20bootstrapping%20procedure%20on%20food%20expenditure%20data.pdf