Abstract

Cubic splines are commonly used for capturing the changes in economic analysis. This is because of the fact that traditional regression including polynomial regression fail to capture the underlying changes in the corresponding response variables. Moreover, these variables do not change monotonically, i.e. there are discontinuities in the trend of these variables over a period of time. The objective of this research is to explain the movement of under-five child mortality in Pakistan over the past few decades through a combination of statistical techniques. While cubic splines explain the movement of under-five child mortality to a large extent, we cannot deny the possibility that splines with fractional powers might better explain the underlying movement. . Hence, we estimated the value of fractional power by nonlinear regression method and used it to develop the fractional splines. Although, the fractional spline model may have the potential to improve upon the cubic spline model, it does not demonstrate a real improvement in results of this case, but, perhaps, with a different data set.

Highlights

  • Fractional splines work in the same context that polynomial splines do, but with much greater flexibility and better fit

  • Fractional splines can produce a smaller error sum of squares and a higher R-squared than polynomial splines

  • The example provided in this research hopefully has given the reader an understanding of how spline models are more appropriate than traditional linear and polynomial regression models and how these models are set up and estimated and how to choose a proper model among various alternative spline models

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Summary

Introduction

Regression analysis is based upon the study and analysis of relationships among various variables. The classical linear model is represented by the following equation. It is useful, to recognize two of the fundamental purposes for which linear regression is valuable. The main principle motivation behind regression is to give a summary and reduction of the observed data keeping in mind the end goal to investigate and present the relationship between the configuration variable x and the reaction variable y. The other main purpose of regression is to utilize the model for forecast. Prediction is no doubt an essential part of regression, it is most likely a much more precise reflection of the statistical practice to consider regression fundamentally a model based system for data outline

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