If that's the problem then
1. If theoretical prediction means "numbers" then plotting data y and
prediction y-hat versus predictor x is good but plotting data versus
prediction and residuals versus prediction are likely to be more
incisive.
2. If theoretical prediction means "an equation with parameters" then
fitting it directly is indicated.
Nick
[email protected]
L S
The goal in doing this is actually not a regression discontinuity
design, but rather to see whether actual data seems to fall along a
line, which is predicted by theory. That is, I want to plot actual
data against a theoretical prediction, plotting the actual data using
a flexible functional form, and plotting a 95% confidence intervals.
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