HOW TO MODEL THE COMPLEX WORLD?

Abstract

Regression analysis is a powerful tool to describe the relationship between response and predictors. In practice, parametric regression models such as linear regression models are widely used due to their simplicity and interpretability. When a parametric regression model is correctly fitted by the data, further statistical analysis can be easily and accurately elaborated with good explanations. However, such further analysis and interpretation could be misleading when the model does not fit the data well.