Hi all,
I'm struggling with this problem and I am wondering if any of you could help me out:
So my response variable y is in the open interval (0,1), and I want to model a dataset
using the Beta distribution. My question deals with how to reparameterize the shape
parameters a and b and link it to my covariates (x's) using a logit function.
The best thing I've come up with so far is:
1) Define a new parameter mu, such that logit(mu) = X %*% coefficients
2) Define a new parameter s = a + b. We also know that var(y) = (mu*(1-mu))/(1+s).
3) Through this, I can solve for a and b, this is my reparamterization.
The problem I keep running into is that, by solving for s from the equation var(y) =
(mu*(1-mu))/(1+s), s turns out to be negative, since mu is always less than 1 and var(y)
is also less than 1. Since the beta distribution is only defined for s>0, my optim
routine just stops. Could someone who has experience with this tell me what piece of
insight am I missing? There must be something I'm missing since my s values are all
negative.
Thanks a bunch!
Clarence