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V S Prasannakumar Mamidala

CBA Batch 3 Section B

Student ID: 71420100

from the standard linear regression model?

Linear regression using Ordinary Least Squares (OLS) method assumes that the

data values are normally distributed and it can take any values whether it is

positive or negative, integer or fraction which is not the case with count

data which will only have integer values.

Also as professor mentioned during the class, the data are a random sample

of the population where the errors are statistically independent from one

another, need to satisfy Homoscedasticity (equality of variances of data

points) and Normality of errors (for purposes of hypothesis testing) in case of

Linear regression using Ordinary Least Squares (OLS) method. These

assumptions may not hold true for count data.

Count data tend to take Poisson distribution, but not normal distribution as

assumed by Linear regression using Ordinary Least Squares (OLS) method .

2(a) Analyze data to study the effects of Drug and physician Age on the number

of prescriptions. Also, study the effect of interaction between Drug & Age.

(i) Poisson Model with both drug & age

Log(Pres) = 0 + D1 * (Drug B) + D2 * (Age O) + D3 * (Age Y)

2(a) Analyze data to study the effects of Drug and physician Age on the number

of prescriptions. Also, study the effect of interaction between Drug & Age.

(ii) Poisson Models with NULL model, drug & age individually make a note of residual deviance

As

As explained

explained in

in tutorial

tutorial 1,

1, Inclusion

Inclusion of

of each

each variable

variable in

in the

the

Poisson

Poisson equation

equation improves

improves the

the model

model performance

performance in

in such

such a

a

way

way that

that as

as the

the number

number of

of parameters

parameters increases

increases in

in the

the

model

model ,residual

,residual deviance

deviance decreases

decreases eventually

eventually which

which

means

means the

the model

model with

with all

all variables

variables fits

fits the

the data

data well

well when

when

compare

compare to

to other

other models.

models. If

If the

the model

model exactly

exactly fits

fits the

the data

data

then

then the

the residual

residual deviance

deviance is

is zero.

zero.

In

In this

this case,

case, the

the goodness

goodness of

of fit

fit shows

shows p

p of

of 1.46e-21;

1.46e-21;

Note

Note AIC

AIC =

= 493

493

Since

Since residual

residual deviance

deviance is

is greater

greater than

than its

its degrees

degrees of

of

freedom

freedom then

then there

there is

is an

an over

over dispersion

dispersion in

in the

the data.

data.

Let

Let us

us fit

fit the

the Negative

Negative Binomial

Binomial Regression

Regression and

and see

see whether

whether

NB

model

fits

the

data

better

than

Poisson

Model

NB model fits the data better than Poisson Model or

or not.

not.

2(a) Analyze data to study the effects of Drug and physician Age on the number

of prescriptions. Also, study the effect of interaction between Drug & Age.

(iii) Negative Binomial Regression Model

As

As can

can be

be seen

seen from

from these

these screenshots

screenshots of

of R

R outputs,

outputs, as

as the

the number

number of

of parameters

parameters

increases

increases in

in the

the model

model ,residual

,residual deviance

deviance decreases

decreases eventually

eventually which

which means

means the

the model

model

with

with all

all variables

variables fits

fits the

the data

data well

well when

when compare

compare to

to other

other models.

models. If

If the

the model

model

exactly

exactly fits

fits the

the data

data then

then the

the residual

residual deviance

deviance is

is zero.

zero.

In

In this

this case,

case, the

the goodness

goodness of

of fit

fit shows

shows p

p of

of 0.33;

0.33; Note

Note AIC

AIC =

= 53

53

Comparison:

Residual Deviance(NB) < Residual Deviance (Poisson)

AIC(NB) < AIC(Poisson)

By this, we can say that : As compare to Poisson regression,

Negative binomial regression fits the data better.

(b) Suppose that there are two missing values in the above data in the following way:

one value missing in second coumn - 5th row and other value missing in third coumn - 8th row.

Apply a suitable regression technique to impute the missing values.(15 marks)

regression value using which we can compute missing

value of prescriptions in row 5, given the values of Drug &

Age are known.

5 will be 39

Similarly, using the same equation, we can calculate the

missing value of drug to be A. The same value is also

obtained using K-nearest neighbor (KNN) technique.

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