IDEAS home Printed from https://ideas.repec.org/a/taf/japsta/v32y2005i4p351-374.html
   My bibliography  Save this article

Monte carlo comparison of estimation methods for additive two-way tables

Author

Listed:
  • Natasha Yakovchuk
  • Thomas Willemain

Abstract

We considered the problem of estimating effects in the following linear model for data arranged in a two-way table: Response = Common effect + Row effect + Column effect + Residual. This work was occasioned by a project to analyse Federal Aviation Administration (FAA) data on daily temporal deviations from flight plans for commercial US flights, with rows and columns representing origin and destination airports, respectively. We conducted a large Monte Carlo study comparing the accuracy of three methods of estimation: classical least squares, median polish and least absolute deviations (LAD). The experiments included a wide spectrum of tables of different sizes and shapes, with different levels of non-linearity, noise variance, and percentages of empty cells and outliers. We based our comparison on the accuracy of the estimates and on computational speed. We identified factors that significantly affect accuracy and speed, and compared the methods based on their sensitivity to these factors. We concluded that there is no dominant method of estimation and identified conditions under which each method is most attractive.

Suggested Citation

  • Natasha Yakovchuk & Thomas Willemain, 2005. "Monte carlo comparison of estimation methods for additive two-way tables," Journal of Applied Statistics, Taylor & Francis Journals, vol. 32(4), pages 351-374.
    • Handle: RePEc:taf:japsta:v:32:y:2005:i:4:p:351-374
    DOI: 10.1080/02664760500079118
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/02664760500079118
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/02664760500079118?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. A. Charnes & W. W. Cooper & R. O. Ferguson, 1955. "Optimal Estimation of Executive Compensation by Linear Programming," Management Science, INFORMS, vol. 1(2), pages 138-151, January.
    2. Phillips, Robert F., 1997. "On the robustness of two alternatives to least squares: A Monte Carlo study," Economics Letters, Elsevier, vol. 56(1), pages 21-26, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wojtek Michalowski & Włodzimierz Ogryczak, 2001. "Extending the MAD portfolio optimization model to incorporate downside risk aversion," Naval Research Logistics (NRL), John Wiley & Sons, vol. 48(3), pages 185-200, April.
    2. Kadziński, MiŁosz & Greco, Salvatore & SŁowiński, Roman, 2012. "Extreme ranking analysis in robust ordinal regression," Omega, Elsevier, vol. 40(4), pages 488-501.
    3. Thomas L. Saaty, 2013. "The Modern Science of Multicriteria Decision Making and Its Practical Applications: The AHP/ANP Approach," Operations Research, INFORMS, vol. 61(5), pages 1101-1118, October.
    4. Yanagida, John F. & Book, Don N., 1984. "Application of the Least Absolute Value Technique as a Data Filter for Detecting Structural Change in the Demand for Meat," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 0(Number 1), pages 1-5, April.
    5. Dima, Bogdan & Dincă, Marius Sorin & Spulbăr, Cristi, 2014. "Financial nexus: Efficiency and soundness in banking and capital markets," Journal of International Money and Finance, Elsevier, vol. 47(C), pages 100-124.
    6. Hamalainen, Raimo P. & Mantysaari, Juha, 2002. "Dynamic multi-objective heating optimization," European Journal of Operational Research, Elsevier, vol. 142(1), pages 1-15, October.
    7. Tsoukias, Alexis, 2008. "From decision theory to decision aiding methodology," European Journal of Operational Research, Elsevier, vol. 187(1), pages 138-161, May.
    8. Richard W. Cottle, 2017. "On “Pre-historic” Linear Programming and the Figure of the Earth," Journal of Optimization Theory and Applications, Springer, vol. 175(1), pages 255-277, October.
    9. W. Cooper & C. Lovell, 2011. "History lessons," Journal of Productivity Analysis, Springer, vol. 36(2), pages 193-200, October.
    10. Demirci, Mehmet & Bettinger, Pete, 2015. "Using mixed integer multi-objective goal programming for stand tending block designation: A case study from Turkey," Forest Policy and Economics, Elsevier, vol. 55(C), pages 28-36.
    11. Tsai, Wen-Hsien & Hsu, Jui-Ling, 2008. "Corporate social responsibility programs choice and costs assessment in the airline industry—A hybrid model," Journal of Air Transport Management, Elsevier, vol. 14(4), pages 188-196.
    12. Glover, Fred & Sueyoshi, Toshiyuki, 2009. "Contributions of Professor William W. Cooper in Operations Research and Management Science," European Journal of Operational Research, Elsevier, vol. 197(1), pages 1-16, August.
    13. Koenker, Roger & Park, Beum J., 1996. "An interior point algorithm for nonlinear quantile regression," Journal of Econometrics, Elsevier, vol. 71(1-2), pages 265-283.
    14. Hanks, Robert W. & Weir, Jeffery D. & Lunday, Brian J., 2017. "Robust goal programming using different robustness echelons via norm-based and ellipsoidal uncertainty sets," European Journal of Operational Research, Elsevier, vol. 262(2), pages 636-646.
    15. Grigoroudis, Evangelos & Noel, Laurent & Galariotis, Emilios & Zopounidis, Constantin, 2021. "An ordinal regression approach for analyzing consumer preferences in the art market," European Journal of Operational Research, Elsevier, vol. 290(2), pages 718-733.
    16. J González-Pachón & C Romero, 2006. "An analytical framework for aggregating multiattribute utility functions," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 57(10), pages 1241-1247, October.
    17. Kilpatrick, Henry E., Jr., 1998. "Some useful methods for measuring the benefits of social science research," Impact assessments 5, International Food Policy Research Institute (IFPRI).
    18. Sueyoshi, Toshiyuki, 2006. "DEA-Discriminant Analysis: Methodological comparison among eight discriminant analysis approaches," European Journal of Operational Research, Elsevier, vol. 169(1), pages 247-272, February.
    19. Mehmet Hakan Satman, 2022. "Teaching the Median with Terms of Absolute Value, Differentiability, and Optimization," Alphanumeric Journal, Bahadir Fatih Yildirim, vol. 10(1), pages 41-50, June.
    20. Zopounidis, Constantin & Doumpos, Michael, 2002. "Multicriteria classification and sorting methods: A literature review," European Journal of Operational Research, Elsevier, vol. 138(2), pages 229-246, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:japsta:v:32:y:2005:i:4:p:351-374. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CJAS20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.