Beta
319867

Robust Estimation for Beta Regression Model in the Presence of Outliers: A Comparative Study

Article

Last updated: 25 Dec 2024

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Abstract

Beta regression model is a widely known statistical model when the response variable has the form of fractions or percentages. The maximum likelihood method is usually employed for estimating the regression coefficients of beta regression model. However, the maximum likelihood estimator is highly sensitive to outliers. To solve this problem, new statistical techniques have been developed that are not so easily affected by outliers; these are robust methods. This paper discusses the efficiency of using four robust estimation methods, the S-estimation method, MM-estimation method, least trimmed sum of absolute deviation method and the robust and efficient weighted least squares estimation method in estimating the parameters of beta regression model in the presence of outliers. A Monte Carlo simulation study is performed to compare the performance of these robust estimators with the maximum likelihood estimator. Also, a real data set is used to illustrate the applicability of these estimators. The results showed that the robust and efficient weighted least squares estimation method gives better performance than the maximum likelihood estimation, S-estimation, MM-estimation, and least trimmed sum of absolute deviation methods.

DOI

10.21608/caf.2023.319867

Keywords

Beta regression model, outliers, S-estimation, MM-estimation, Robust and efficient weighted least squares estimation

Authors

First Name

Zeinab M. Abd

Last Name

El-Raoof

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Affiliation

Al-Azhar University- Girls' Branch Tafahna Al-Ashraf, Egypt

Email

zeinab.abdelroof@azhar.edu.eg

City

Tanta

Orcid

-

First Name

Mervat

Last Name

M. El-Gohary

MiddleName

-

Affiliation

Faculty of Commerce Al-Azhar University- Girls' Branch Cairo, Egypt

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-

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Orcid

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First Name

Enas

Last Name

G. Yehia

MiddleName

-

Affiliation

Al-Azhar University- Girls' Branch Tafahna Al-Ashraf, Egypt

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-

City

-

Orcid

-

Volume

43

Article Issue

3

Related Issue

43760

Issue Date

2023-09-01

Receive Date

2023-06-03

Publish Date

2023-09-01

Page Start

380

Page End

406

Print ISSN

1110-4716

Online ISSN

2682-4825

Link

https://caf.journals.ekb.eg/article_319867.html

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https://caf.journals.ekb.eg/service?article_code=319867

Order

319,867

Publication Type

Journal

Publication Title

التجارة والتمويل

Publication Link

https://caf.journals.ekb.eg/

MainTitle

Robust Estimation for Beta Regression Model in the Presence of Outliers: A Comparative Study

Details

Type

Article

Created At

25 Dec 2024