Modeling the Household Income Expended on Food in Egypt: A Beta Regression Approach | ||
| The Egyptian Statistical Journal | ||
| Article 1, Volume 58, Issue 1, June 2014, Pages 1-30 PDF (14.43 M) | ||
| Document Type: Original Article | ||
| DOI: 10.21608/esju.2014.314437 | ||
| Author | ||
| Magda Mohamed Mohamed Hagag | ||
| Damanhour University | ||
| Abstract | ||
| The Beta distribution is a highly flexible parametric distribution, able to accommodate both unimodal and bimodal densities with varying severity of skewness. Beta regression is an increasing popular approach for modeling rates, proportions, concentration, i.e., the situations where the dependent variable is continuous and restricted to the unit interval (0,1). It is based on the assumption that the response variable is Beta-distributed and that its mean is related to a set of regressors through a linear predictor with unknown coefficients and a link function. Beta regression model is similar to the approach of generalized linear models due to McCullagh and Nelder (1989), except that the distribution of the response is not a member of the exponential family distributions. Beta regression combines the strength of generalized linear models with the flexibility of the Beta distribution providing utility in modeling skewed and/or bounded variable. In this paper, a Beta regression model is developed to perform inference in both fixed and variable dispersion Beta regression models using real data of food expenditure in Egypt (2011). The concentration is on modeling the proportion of income spent on food using Beta regression approach. | ||
| Keywords | ||
| Beta Distribution - Beta Regression - Household Income; Rates; Proportions | ||
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