In any firm of regression I hate the idea of removing outliers. They may
contain valuable in. First I would ask if there were errors in Measurement
or coding in the outliers and can the errors be corrected. Are the errors
due to the mistaken use use different units? Are there changes in
technology or other methodologies that might have caused the outliers.
Answering this and similar questions relative to your topic should guide
you on what you should do.
The large number outliers may also indicate that you have a problem with
the model that you are estimating. Have you some omitted variables? Should
you be transforming some of your variables?
Gretl does not provide answers to your questions. Removing outliers is a
last resort.
On Tue 13 Sep 2022, 10:51 Alison Loddick, <Alison.Loddick(a)northampton.ac.uk>
wrote:
Hi,
I’m looking at panel regression, and one of the assumptions in regression
is to remove outliers. My data has a lot of outliers, and it impacts my
residuals which are definitely not normal. I’m wondering if there is an
easy way to remove the outliers?
Thank you
Alison
*Alison Loddick*
*BSc MSc PGCE CStat*
Learning Development Tutor (Mathematics and Statistics)
Library and Learning Services
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