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Home > Statistics Every Writer Should Know > The Stats Board > Discusssion

Tobit regression analysis
Message posted by Alex on April 11, 2000 at 12:00 AM (ET)

I need to know the purpose of a tobit regression analysis and when it is appropritate to use. If you are unable to directly answer this question, please provide me with a suitable reference.

Thanks
Alex


READERS RESPOND:
(In chronological order. Most recent at the bottom.)

Re: Tobit regression analysis
Message posted by abraham (via 129.242.209.160) on April 5, 2001 at 8:38 AM (ET)

i'm working on estimating efficiency parameters and it's relationship with farm specific factors which are mostly binary.
i wonder if you can assist


Re: Tobit regression analysis
Message posted by Karen (via 144.75.12.252) on April 5, 2001 at 8:45 AM (ET)

You should use Tobit when your dependent variable is "truncated" or limited to certain values, not necessarily dichtomous. For example, expenditures often cannot be negative. In that case, you would want to consider using Tobit. Beware, however, of the interpretation of your estimates!!



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