Implement the study in Example 14.3 and compare your results to the example. Example 14.3. In this
Question:
Implement the study in Example 14.3 and compare your results to the example.
Transcribed Image Text:
Example 14.3. In this example we illustrate how to isolate the nonlinear dependence between random vectors to test for nonlinearity. Gumbel's bivariate exponential distribution [Gumbel, 1961] has density function f(x, y; 0) = [(1 + 0x)(1+0y)] exp(-x - y - Oxy), x,y>0;0 0 1. The marginal distributions are standard exponential, so there is a strong non- linear, but monotone dependence relation between X and Y. The conditional density is f(y|x) = e(+0x)y [(1 + 0x) (1 + 0y) 0], y > 0. If = 0, then fx,y (x, y) = fx (1) fy (y) and independence holds, so p = 0. At the opposite extreme if 0 = 1, then p= -0.40365 (see [Kotz et al., 2000, Sec. 2.2]). Simulated data was generated using the conditional distribution function approach outlined in Johnson [1987]. Empirical power of dCov and correlation tests for the case = 0.5 are compared in Figure 14.3(a), estimated from 10,000 test decisions each for sample sizes {10:100(10), 120:200(20), 250, 300}. This comparison reveals that the correlation test is more powerful than dCov against this alternative, which is not unexpected because E[Y|X = x] = (1+0+x0)/(1+ x) is monotone. power 19 0.8 0.6 8 0.2 0 .-.- dCov Pearson rank-dCov Spearman T 50 T 100 T 150 sample size (a) T 200 T 250 300 0.8 0.6 0.2 8 0 ---- dCov Pearson rank-dCov Spearman 50 T 100 T 150 sample size (b) T 200 T 250 300 While we cannot split the dCor or dCov coefficient into linear and nonlinear components, we can extract correlation first and then compute dCor on the residuals. In this way one can separately analyze the linear and nonlinear components of bivariate or multivariate dependence relations. Xif To extract the linear component of dependence, fit a linear model Y = XB + to the sample (X, Y) by ordinary least squares. It is not necessary to test whether the linear relation is significant. The residuals ; = X3 - Y; are uncorrelated with the predictors X. Apply the dCov test of independence to (X, ). Returning to the Gumbel bivariate exponential example, we have extracted the linear component and applied dCov to the residuals of a simple linear re- gression model. Repeating the power comparison described above on (X, 2) data, we obtained the power estimates shown in Figure 14.3(b). One can note that power of dCov tests is increasing to 1 with sample size, exhibiting statis- tical consistency against the nonlinear dependence remaining in the residuals of the linear model. This procedure is easily applied in arbitrary dimension. One can fit a linear multiple regression model or a model with multivariate response to extract the linear component of dependence. This has important practical applications for evaluating models in higher dimension.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (QA)
Youve provided a screenshot containing information about a statistical study from an example in a textbook or article Example 143 describes a study that aims to test for nonlinearity in the dependence ...View the full answer
Answered By
Sarfraz gull
have strong entrepreneurial and analytical skills which ensure quality tutoring and mentoring in your international business and management disciplines. Over last 3 years, I have expertise in the areas of Financial Planning, Business Management, Accounting, Finance, Corporate Finance, International Business, Human Resource Management, Entrepreneurship, Marketing, E-commerce, Social Media Marketing, and Supply Chain Management.
Over the years, I have been working as a business tutor and mentor for more than 3 years. Apart from tutoring online I have rich experience of working in multinational. I have worked on business management to project management.
5.00+
3+ Reviews
10+ Question Solved
Related Book For
Cases And Materials On Employment Law
ISBN: 9780199580712
8th Edition
Authors: Richard Painter, Ann Holmes
Question Posted:
Students also viewed these Social Science questions
-
Compare your results to those obtained using t test methods in Problem 8.107 (p. 329)? Cardiovascular Disease Left ventricular mass (LVM) is an important risk factor for subsequent cardiovascular...
-
QUIZ... Let D be a poset and let f : D D be a monotone function. (i) Give the definition of the least pre-fixed point, fix (f), of f. Show that fix (f) is a fixed point of f. [5 marks] (ii) Show that...
-
In Example 3 the eigenvalues were found for the matrix A and the conditioned matrix AH. Use these to determine the condition numbers of A and AH in the l2 norm, and compare your results to those...
-
Sketch the six graphs of the x- and y-components of position, velocity, and acceleration versus time for projectile motion with x 0 = y 0 = 0 and 0 < 0 < 90.
-
Use either < or > for? To write a true sentence
-
The demand rises for admission to a university, but both the tuition and the number of openings in the entering class remain the same. Will this change affect the admission standards of the...
-
A long solenoid with 300 windings per meter of length carries a current of \(1.0 \mathrm{~A}\). Calculate the magnitude of the magnetic field inside the solenoid.
-
Selected transactions for Sophie's Dog Care are as follows during the month of March. March 1 Paid monthly rent of $1,200. 3 Performed services for $140 on account. 5 Performed services for cash of...
-
You are planning a 30-day vacation in Malaysia in one year's time. The present charge for a luxury suite plus meals is RM760.00 per day and the RM is presently trading at RM 3.8000/$. Hence the $...
-
Repeat Examples 14.4 and 14.5 on some other available data set in any R package or other source. Example 14.4. This example compares dCor and Pearson correlation in exploratory data analysis....
-
Operating cash flow was 43.0 million (2008: 30 million), representing 93% of adjusted operating profit, despite an increase in stock and debtors commensurate with the growth of the business. Net debt...
-
While forming an economic group creates trade, it can also have some drawbacks. What are the potential costs of economic integration?
-
All 4 parts to this question please. Thank you. It is all part of one question, use the information from the top. THANK YOU 1) Suppose Fuzzy Button Clothing Company's assets are fully utilized. Use...
-
Loss Carryforward The Bookbinder Company had $380,000 cumulative operating losses prior to the beginning of last year. It had $80,000 in pre-tax earnings last year before using the past operating...
-
Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Average Cost Per Unit Direct...
-
Marwick's Pianos, Incorporated, purchases pianos from a manufacturer for an average cost of $1,505 per unit and then sells them to retail customers for an average price of $2,600 each. The company's...
-
Problem Statement: Social Media Dashboard using Django Overview: You are tasked with creating a Social Media Dashboard using Django, allowing users to view and manage their social media activity from...
-
On June 4, Seller Company signed a sales agreement with Buyer Company to deliver and install a piece of factory equipment. The total contract price is $300,000. Customers usually buy an...
-
What are the risks and liability factors in an audit? What are the implications to the auditor? What are the implications to the organization? How can the auditor mitigate these risks and liability...
-
Le Ei, i = 1,., k be Euclidean spaces of various dimensions. A function f: E1 X. X EkRp is called multi linear if for each choice of xj Ej, j I the function f: EiRp defined by g(x) = f(x1,.,xi-1,...
-
Regard an n x n matrix as a point in the -fold product Rn x . x Rn by considering each row as a member of Rn.. a. Prove that det : Rn x . x Rn Rn is differentiable and b. If aij : R R are...
-
Suppose f: Rn Rn is differentiable and has a differentiable inverse F -1: Rn Rn. Show that (f-1) I (a) = (fi (f-1(a)))-1.
-
Sarah purchased a condominium at Tulip Meadows. She pays $3196, 80 in property taxes each year. These taxes are taken out of her monthly maintenance fee of $1480. What percentage of this monthly fee...
-
William, a MFJ taxpayer, operates a landscape business as a sole proprietor. In 2022, William's QBI is $250,000, and AGI is $295,900, which includes his wife, Kate's wages. He and his wife claim the...
-
Accounting Questions on Tax Laws: What is the difference between a tax credit and a tax deduction? How does the IRS determine an individual's tax bracket? Can you explain the concept of tax deferral...
Study smarter with the SolutionInn App