Timeline for How do I interpret this residual diagnostics plot?
Current License: CC BY-SA 3.0
5 events
| when toggle format | what | by | license | comment | |
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| Apr 12, 2018 at 22:33 | vote | accept | SanMelkote | ||
| Apr 11, 2018 at 18:01 | comment | added | Gavin Simpson | You can't just reply on or use this one diagnostic plot to identify all modelling issues. Your model clear still has considerable bias at larger fitted values. Look at the fitted versus observed values and you'll see the bias problem. Also, you can plot residuals against your predictor variables to diagnose if you need different functional forms for the effects of your covariates. | |
| Apr 11, 2018 at 17:45 | comment | added | SanMelkote | To your other point @GavinSimpson, I have the flexibility of coding the days-to-fund the loan as either 2.4 days or round to 2 days, and similarly code the same day funded loans as either 0.5 or 0 days. As you suggested, I will check out Gamma distribution as well. | |
| Apr 11, 2018 at 17:44 | comment | added | SanMelkote | Thanks @GavinSimpson for such detailed and very helpful clarifications and suggestions. Based on your input, I first attempted the log-transformation of the dependent variable (days-to-fund-loan). The residual vs fitted plot shows an even spread until fitted value < 8, and then a clear (somewhat steep) downward slope pattern. As I understand, this is problematic as well. I will try GLM with Poisson family. Are similar residual diagnostic plots and interpretations applicable for Poisson family? | |
| Apr 11, 2018 at 17:11 | history | answered | Gavin Simpson | CC BY-SA 3.0 |