How to apply a logistic + an OLS model to the same data set? I have a data set measuring rock detection depths $Y$ based on the distance from some point of interests $X$, which are classified based on geophysical criteria. Each observation $Y$ is set after plowing the ground to determine if A) there is any chance of rock formation at all and B) what is the distance of the rock from the ground. In most cases the detection is unsuccessful and $Y$ is set to 0. Otherwise $Y$ it's set to a measure of rock depth.
There is a linear relationship between $\log(Y)$ and $\log(X)$ as shown in the plot, for $Y \ne 0$. To allow for the $Y$ log transformation I added a small constant value, 0.00001 which is an order of 10 lower than $Y$ smallest value other than 0.
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How should I model this data for prediction?
I thought about a convoluted solution using logistic regression to determine whether Y is higher than 0.0001 or not, then OLS to predict Y for each X when the result of the logistic estimator is higher than 50%. Is there a more sound approach?
 A: Unless there is a method that is tailored to what the 0.0001 values really mean, a good model to consider is one of the cumulative probability ordinal models such as the proportional odds ordinal logistic model.  Such models can handle continuous $Y$ and also deal with arbitrarily large amounts of clumping at specific $Y$ values.  The R rms package orm function is designed to handled continuous $Y$ fairly efficiently even when the model has thousands of intercepts.  In ordinal models you need one intercept per unique value of $Y$ less one.
A: You can certainly specify a mixture model which will jointly model the probability that Y is 0.0001 alongside the linear relationship (given that Y is greater than this quantity) between X and Y. On the other hand, I'd first start with some questions about what the underlying process is. 
I don't see a lot of variability (though it's hard to tell from the plot) in the proportion of 0.0001 counts over the range of X. Are they actually related, or is there some other sort of censoring process going on?
Also, I'd like to know more about those (seemingly perfect) linear patterns in the non-degenerate Y's. What kind of data is this?
