Mathematics and Statistics Vol. 10(4), pp. 833 - 843
DOI: 10.13189/ms.2022.100414
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Generalized Biased Estimator for Beta Regression Model: Simulation and Application

Rasha A. Farghali , Samah M. Abo-El-Hadid ^*
Department of Mathematics, Insurance and Applied Statistics, Faculty of Commerce and Business Administration, Helwan University, Cairo, Egypt

ABSTRACT

Beta regression model is used for modeling proportions measured on a continuous scale; its parameters are estimated with the maximum likelihood method. Classical regression models, such as linear regression model and nonlinear regression models like logistic regression are not suitable for such situations. As in linear regression model, the independent variables are assumed to be uncorrelated if this assumption is not met, then the multicollinearity appears. Multicollinearity problem means that there is a near dependency between the independent variables. Biased estimators are commonly used for correcting the multicollinearity problem. In this study, we propose a generalized biased estimator for correcting multicollinearity in beta regression that is generalize beta ridge regression estimator (GBRRE). The performance of the proposed generalized biased estimator is evaluated theoretically via the matrix mean squared errors and the scalar mean squared errors; and practically using a Monte Carlo simulation study. The simulation results show that the optimal shrinkage estimator is K1 and the worst one is K2. Also, the proposed generalized estimator is applied to a real data set of pre-university education students in Egypt during the academic year (2018/2019) and we found the application results agree with the simulation results. Finally based on the results of the simulation study and the application the performance of the suggested generalized biased estimator is better than maximum likelihood estimators.

KEYWORDS
Beta Regression, Ridge Estimator, Multicollinearity, Generalized Ridge Regression

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Rasha A. Farghali , Samah M. Abo-El-Hadid , "Generalized Biased Estimator for Beta Regression Model: Simulation and Application," Mathematics and Statistics, Vol. 10, No. 4, pp. 833 - 843, 2022. DOI: 10.13189/ms.2022.100414.

(b). APA Format:
Rasha A. Farghali , Samah M. Abo-El-Hadid (2022). Generalized Biased Estimator for Beta Regression Model: Simulation and Application. Mathematics and Statistics, 10(4), 833 - 843. DOI: 10.13189/ms.2022.100414.