Tobit Regression

[Kamrulstat]

The Tobit model, also called a censored regression model, is designed to estimate linear relationships between variables when there is either left- or right- or both censoring in the dependent variable (also known as censoring from below and above, respectively).

When  dependent variable has a certain limit then to predict this dependent variable, need to use Tobit regression model.

Suppose dependent variable is performance which lies between 0 to 1. In this case, to predict performance better to use Tobit regression.

[ABM Nazmul Islam]

nice sharing