Dear all,
I have a question regarding the appropriateness of using negative binomial regression (NBREG) for a dependent variable that is a non-negative integer but doesn’t represent a count of occurrences.
My dependent variable is project performance, categorized by the company into about 10 intervals based on project margin (e.g., category one for negative project margin; category two for margins from 0 to 10,000; category three for margins from 10,000 to 50,000; ...; the last category is for margins beyond 1,000,000). Each category represents a different interval range.
I'm considering both ordered probit and negative binomial models. However, I’ve read that having too many categories can make interpreting coefficients in an ordered probit model challenging. On the other hand, while the negative binomial model is typically used for count variables representing occurrences, I wonder if it can be applied to my dependent variable scenario.
Are there any papers or books or posts that support using negative binomial regression for a variable like mine?
I appreciate your time and effort in answering my question.
I have a question regarding the appropriateness of using negative binomial regression (NBREG) for a dependent variable that is a non-negative integer but doesn’t represent a count of occurrences.
My dependent variable is project performance, categorized by the company into about 10 intervals based on project margin (e.g., category one for negative project margin; category two for margins from 0 to 10,000; category three for margins from 10,000 to 50,000; ...; the last category is for margins beyond 1,000,000). Each category represents a different interval range.
I'm considering both ordered probit and negative binomial models. However, I’ve read that having too many categories can make interpreting coefficients in an ordered probit model challenging. On the other hand, while the negative binomial model is typically used for count variables representing occurrences, I wonder if it can be applied to my dependent variable scenario.
Are there any papers or books or posts that support using negative binomial regression for a variable like mine?
I appreciate your time and effort in answering my question.
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