
Accession Number : AD0698734
Title : A MONTE CARLO STUDY OF LINEAR REGRESSION ASSUMPTIONS,
Corporate Author : RAND CORP SANTA MONICA CALIF
Personal Author(s) : Sumner,G. C.
Report Date : OCT 1969
Pagination or Media Count : 49
Abstract : The report demonstrates the effects on linear regression estimates of variations in (1) the distribution of the dependent variable, (2) distribution of the independent variable, and (3) intercorrelation between independent variables. The basic approach is to premise a population model to reflect some underlying physical law or structural relationship, assign numerical values to parameters, and then introduce violations of the classical assumptions that might be typical in cost estimation problems. From the various cases thus constructed, samples are generated by computer in Monte Carlo fashion. This empirical study tests the sensitivity (in terms of bias and sampling variability) of regression coefficients and common statistical measures of reliability.
Descriptors : (*REGRESSION ANALYSIS, SENSITIVITY), LEAST SQUARES METHOD, DISTRIBUTION FUNCTIONS, MATHEMATICAL PREDICTION, POPULATION(MATHEMATICS), ANALYSIS OF VARIANCE, UNCERTAINTY, MONTE CARLO METHOD, MANAGEMENT PLANNING AND CONTROL, COSTS
Subject Categories : Administration and Management
Statistics and Probability
Distribution Statement : APPROVED FOR PUBLIC RELEASE