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  • Determining the right model

    Dear community,

    I am currently working on a regression model with an ESG index score as the dependent variable. This variable ranges from 0 (minimum) to 1 (maximum). Now, I wonder if using MLR is the right approach in this case since 291 out of the 412 observations have a value of 0.

    I am considering using a Two-Part Model but was wondering whether this is the right approach or if I should use a different model.

    I appreciate any help you can provide.

  • #2
    Tim: Perhaps consider fractional regression? See
    Code:
    help fracreg

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