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389546

The Performance of Robust Regression Estimators in Presence of Outliers

Article

Last updated: 05 Jan 2025

Subjects

-

Tags

Business Subject

Abstract

Linear regression models are common, powerful statistical methods used to build a model between a dependent variable and one or more independent variables to explain and validate the relationship between the dependent variable and the independent variables the parameters of the linear regression model are unknown. Estimators are derived to estimate those parameters. Ordinary Least Square (OLS) is one of the most common estimates for the linear regression parameters since it is the best linear unbiased estimator (BLUE) under certain assumptions. The occurrence of outliers in the data leads OLS to have a poor fit and misleading results. Robust estimates are designed to handle the presence of outliers by different methods, among many robust estimates developed over the years, the most common and efficient estimates are discussed. The results indicate that among the different estimates MM estimate had superiority over OLS and other robust estimates, leading to the conclusion that the presence of outliers could lead to many consequences, checking for their presence and handling them appropriately is the most efficient fitting.

DOI

10.21608/erurj.2024.279277.1137

Keywords

Linear Regression, Ordinary Least Squares (OLS), M estimate, S estimate, MM estimate

Authors

First Name

Amer

Last Name

Amer

MiddleName

Ibrahim

Affiliation

Department of Business Technology, Faculty of Management, Economics, and Business Technology, Egyptian Russian University, Badr City, Cairo, Egypt

Email

amer-ibrahim@eru.edu.eg

City

-

Orcid

-

First Name

Rowaida

Last Name

Abd Albary

MiddleName

Ali

Affiliation

Department of Business Technology, Faculty of Management, Economics, and Business Technology, Egyptian Russian University, Badr City, Cairo, Egypt

Email

rowaida-ali@eru.edu.eg

City

Cairo

Orcid

-

First Name

Salem

Last Name

Salem

MiddleName

Adel

Affiliation

Department of Business Technology, Faculty of Management, Economics, and Business Technology, Egyptian Russian University, Badr City, Cairo, Egypt.

Email

salem-adel@eru.edu.eg

City

Cairo

Orcid

-

First Name

Ahmed

Last Name

Abd-Elftah

MiddleName

Ibrahim

Affiliation

Department of Business Technology, Faculty of Management, Economics, and Business Technology, Egyptian Russian University, Badr City, Cairo, Egypt.

Email

ahmed.ibrahim@eru.edu.eg

City

Cairo

Orcid

-

Volume

3

Article Issue

4

Related Issue

51327

Issue Date

2024-10-01

Receive Date

2024-03-25

Publish Date

2024-10-01

Page Start

1,888

Page End

1,902

Print ISSN

2812-6211

Online ISSN

2812-622X

Link

https://erurj.journals.ekb.eg/article_389546.html

Detail API

https://erurj.journals.ekb.eg/service?article_code=389546

Order

389,546

Type

Review article

Type Code

2,449

Publication Type

Journal

Publication Title

ERU Research Journal

Publication Link

https://erurj.journals.ekb.eg/

MainTitle

The Performance of Robust Regression Estimators in Presence of Outliers

Details

Type

Article

Created At

29 Dec 2024