9.8. Pitfalls in Regression Analysis

Some of the pitfalls people encounter when using regression analysis are the following:

  • Lacking an awareness of the assumptions of least-squares regression.

  • Knowing how to evaluate the assumptions of least-squares regression.

  • Knowing what are the alternatives to least-squares regression if a particular assumption is violated.

  • Using a regression model without knowledge of the subject matter.

  • Predicting Y outside the relevant range of X.

When you use regression analysis, you need to be aware of these pitfalls since most regression software does not automatically check for them. You must evaluate the assumptions of regression and whether they have been seriously violated, rather than just compute basic statistics ...

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