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Research paper | 01-November-2017

SMALL AREA ESTIMATION FOR SKEWED DATA IN THE PRESENCE OF ZEROES

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

Forough Karlberg

Statistics in Transition New Series, Volume 16 , ISSUE 4, 541–562

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