Yes, leave the zeros as zeros.
On Tue, Feb 2, 2010 at 9:17 AM, Martin Weiss <[email protected]> wrote:
>
> <>
>
> " I would suggest zero-inflated negative binomial _zinb_"
>
>
>
> And undoing the -recode- from 0 to 1, I presume?
>
>
>
> HTH
> Martin
>
>
> -----Ursprüngliche Nachricht-----
> Von: [email protected]
> [mailto:[email protected]] Im Auftrag von Filipa de
> Castro
> Gesendet: Dienstag, 2. Februar 2010 16:15
> An: [email protected]
> Betreff: Re: st: What multiple regression model for extreme distributions
>
> 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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