Open AccessAnalysis of quantile regression as alternative to ordinary least squares
Author(s) -
Ibrahim Abdullahi,
Abubakar Yahaya
Publication year - 2015
Publication title -
international journal of advanced statistics and probability
Language(s) - English
Resource type - Journals
ISSN - 2307-9045
DOI - 10.14419/ijasp.v3i2.4686
Subject(s) - ordinary least squares , statistics , goodness of fit , quantile regression , statistic , mathematics , test statistic , quantile , regression , linear regression , regression analysis , econometrics , statistical hypothesis testing
In this article, an alternative to ordinary least squares (OLS) regression based on analytical solution in the Statgraphics software is considered, and this alternative is no other than quantile regression (QR) model. We also present goodness of fit statistic as well as approximate distributions of the associated test statistics for the parameters. Furthermore, we suggest a goodness of fit statistic called the least absolute deviation (LAD) coefficient of determination. The procedure is well presented, illustrated and validated by a numerical example based on publicly available dataset on fuel consumption in miles per gallon in highway driving.