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Small Area Estimation for Skewed Data in the Presence of Zeroes

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  • Karlberg Forough

Abstract

Skewed distributions with representative outliers pose a problem in many surveys. Various small area prediction approaches for skewed data based on transformation models have been proposed. However, in certain applications of those predictors, the fact that the survey data also contain a non-negligible number of zero-valued observations is sometimes dealt with rather crudely, for instance by arbitrarily adding a constant to each value (to allow zeroes to be considered as “positive observations, only smaller”, instead of acknowledging their qualitatively different nature).

Suggested Citation

  • Karlberg Forough, 2015. "Small Area Estimation for Skewed Data in the Presence of Zeroes," Statistics in Transition New Series, Statistics Poland, vol. 16(4), pages 541-562, December.
  • Handle: RePEc:vrs:stintr:v:16:y:2015:i:4:p:541-562:n:10
    DOI: 10.21307/stattrans-2015-032
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    References listed on IDEAS

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