```Date: Wed, 2 Jan 2008 12:28:31 -0500 Reply-To: Wensui Liu Sender: "SAS(r) Discussion" From: Wensui Liu Subject: Re: Regression where dependent variable has an upperbound Comments: To: Xu Zeng In-Reply-To: <200712281510.lBSBkNUu014912@mailgw.cc.uga.edu> Content-Type: text/plain; charset=ISO-8859-1 Xu, For your problem, I would use a 2-stage estimation method. 1) estimate predicted collection Yhat conditional on X but unconditional on Yhat <= Y 2) after getting Yhat, estimate predicted probability Yhat <= Y conditional on X 3) so the expected Yhat conditional on Yhat <= Y should be Yhat * Prob(Yhat <= Y) Just my \$0.02. On Dec 28, 2007 10:10 AM, Xu Zeng wrote: > I am trying to predict dollar amount collected for people who have various > debts. But this dependent variable can never exceed the original amount of > debt people owe. For example, if someone owes \$5000 then the predicted > collected \$ must be <=5000 (I am not considering interests for simplicity). > > I will definitely use the original owed amount as one of independent > variabls and the coefficient of it will be less than 1 (in a linear > regression). But I will probably have many other variables, I can't 100% > sure that the predicted amount will be less than original debt amount. Of > course, I can adjust the prediction at the end, but I would like to know if > there is a SAS regression procedure or statistical method that will > guarantee the prediction never exceeds the upperbound. > > Your advice and suggestion will be greatly appreciated. > > Thank you very much and happy new year. > -- =============================== WenSui Liu Statistical Project Manager ChoicePoint Precision Marketing (http://spaces.msn.com/statcompute/blog) =============================== ```

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