Abstract
This paper introduces a new approach to fitting a linear regression model to interval-valued data by relaxing an assumption about using the center of interval data. We use convex combination between lower and upper values of the interval data as a parameter with value between [0,1]. Thus, the center method becomes a special case of this method. For the real application we use Capital Asset Pricing model (CAPM) and Autoregressive model (AR(p)) with interval-valued data to show that this method can provide a better result than the center method based on the Akaike information criterion (AIC).
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Acknowledgement
We are grateful for financial support from Puey Ungphakorn Center of Excellence in Econometrics, Faculty of Economics and Graduate School, Chiang Mai University.
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Chanaim, S., Sriboonchitta, S., Rungruang, C. (2016). A Convex Combination Method for Linear Regression with Interval Data. In: Huynh, VN., Inuiguchi, M., Le, B., Le, B., Denoeux, T. (eds) Integrated Uncertainty in Knowledge Modelling and Decision Making. IUKM 2016. Lecture Notes in Computer Science(), vol 9978. Springer, Cham. https://doi.org/10.1007/978-3-319-49046-5_40
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DOI: https://doi.org/10.1007/978-3-319-49046-5_40
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