I would suggest zero-inflated negative binomial _zinb_
On Tue, Feb 2, 2010 at 9:09 AM, muhammed abdul khalid
<[email protected]> wrote:
>
> I have a household income survey data ( 38,000 observations), and my
> problem is doing a multiple regression on saving ( independent var) to
> ethnicity/strata/employment
> etc( dependent var).
>
> The problem is this : 70% of my observation for the value of saving is
> zero. I had recode it to 1 and log them, but the distribution is still
> extremely skewed ( mean 0.78, std dev is 2.4 min 0 max 14). The
> historgam still looks like the letter L , exteremly skewed to the
> right with long tail. Obviously, OLS is out, and I tried Poisson(
> glm nbinomial) but the distribution is still not distributed normally.
> The data are in order i.e no missing values etc etc. It is clean.For
> some reason, lobit would not run.
>
> What do you suggest? Thank you so much.
>
> Muhammed.
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