Presentation on theme: "Nonlinear models Hill et al Chapter 10. Types of nonlinear models Linear in the parameters. –Includes models that can be made linear by transformation:"— Presentation transcript:
Nonlinear least squares Minimise sum of squared errors b = 1.1612 se(b) = 0.129 Simple expressions for the value of beta that minimises S cannot be found. Similarly expressions for the se(beta) cannot be found. The problem is solved numerically.
Example: proportion of steel produced with electric arc furnace
The poisson regression Number of visits to a lake: count data Does not have a normal distribution Poisson distribution is an alternative: is the average or mean number of visits per year, for all households Number of visits 01234567891013 Frequency615541312319872111
Estimating the conditional mean function in the Poisson regression define the zero-mean error term
Computing probabilities in the Poisson regression What is the probability that a household located 50 miles from the Lake, with income of $60,000, and 3 family members, visits the park less than 3 times per year?