Association models in the weighted log ratio analysis for rates

Association models in the weighted log ratio analysis for rates

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Article ID: iaor20172287
Volume: 59
Issue: 2
Start Page Number: 169
End Page Number: 185
Publication Date: Jun 2017
Journal: Australian & New Zealand Journal of Statistics
Authors: , ,
Keywords: financial
Abstract:

In this paper we consider Goodman's association models and weighted log ratio analysis (LRA). In particular, by combining these two methods, we obtain different weighted log ratio analyses that we can extend to analyse a rates matrix, obtained by calculating the ratio between two initial multidimensional contingency tables. Our approach is illustrated by an empirical study. The selection of the model, to be analysed through the weighted LRA plot, is carried out by means of Poisson regression on rates.

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