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Simulation for Data Science with R

Simulation for Data Science with R

By : Matthias Templ
4.2 (5)
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Simulation for Data Science with R

Simulation for Data Science with R

4.2 (5)
By: Matthias Templ

Overview of this book

Data Science with R aims to teach you how to begin performing data science tasks by taking advantage of Rs powerful ecosystem of packages. R being the most widely used programming language when used with data science can be a powerful combination to solve complexities involved with varied data sets in the real world. The book will provide a computational and methodological framework for statistical simulation to the users. Through this book, you will get in grips with the software environment R. After getting to know the background of popular methods in the area of computational statistics, you will see some applications in R to better understand the methods as well as gaining experience of working with real-world data and real-world problems. This book helps uncover the large-scale patterns in complex systems where interdependencies and variation are critical. An effective simulation is driven by data generating processes that accurately reflect real physical populations. You will learn how to plan and structure a simulation project to aid in the decision-making process as well as the presentation of results. By the end of this book, you reader will get in touch with the software environment R. After getting background on popular methods in the area, you will see applications in R to better understand the methods as well as to gain experience when working on real-world data and real-world problems.
Table of Contents (13 chapters)
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12
Index

The bootstrap in regression analysis


We saw already in Chapter 7, Resampling Methods for estimation of the variance of MCD-based standard errors of correlation coefficients, resampling methods might be the only choice for estimating the variance for complex estimators. This is also true for regression analysis as soon as the classical, ordinary least-squares (OLS) regression is - for good reasons - skipped, and more robust methods are chosen.

Motivation to use the bootstrap

One might ask; "Why do we need a bootstrap to estimate the variance of regression coefficients when analytical expressions are known for it?". The answer is simple: because only for the ordinary least-squares regression, in addition to many model assumptions, are the analytical expressions valid.

Let's first look at the choice of more complex regression methods on a simple example using artificial data that best shows the problem that frequently occurs in practice:

library("robustbase")
data("hbk")
## structure of the data...
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