Question

What are the pitfalls of simple linear regression? True or False for each

1. Lacking an awareness of the assumptions of least squares regression.
2. Not knowing how to evaluate the assumptions of least squares regressions.
3. Not knowing the alternatives to least squares regression if a particular assumption is violated.
4. Using a regression model without knowledge of the subject matter.
5. Extrapolating outside the relevant range of the X and Y variables.
6. Concluding that a significant relationship identified always reflects a cause-and-effect relationship.

Answer 1

Answer to the question)

Pitfalls of linear regression method are:

• We are generally aware of the assumptions and know how to verify the same. Hence statement a and b are FALSE
• The alternatives for regression analysis when any assumption is violated are provided by the non-parametric tests. Hence statement c is also FALSE
• One cannot extrapolate the data outside the given X range values. Hence this pitfall is correct and TRUE
• In regression analysis one does not conclude that that a significant relation means it is causal relation. Hence this statement is FALSE
• The only pitfall in regression analysis is the extrapolation of the data is not possible as the model is based on the given range of x and y values