Small Area Estimation on Zero-Inflated Data Using Frequentist and Bayesian Approach

Authors

Kusman Sadik, Bogor Agricultural UniversityFollow
Rahma Anisa, Bogor Agricultural University
Euis Aqmaliyah, Bogor Agricultural University

Abstract

The most commonly used method of small area estimation (SAE) is the empirical best linear unbiased prediction method based on a linear mixed model. However, it is not appropriate in the case of the zero-inflated target variable with a mixture of zeros and continuously distributed positive values. Therefore, various model-based SAE methods for zero-inflated data are developed, such as the Frequentist approach and the Bayesian approach. Both approaches are compared with the survey regression (SR) method which ignores the presence of zero-inflation in the data. The results show that the two SAE approaches for zero-inflated data are capable to yield more accurate area mean estimates than the SR method.

DOI

10.22237/jmasm/1582727606

Recommended Citation

Sadik, K., Anisa, R., & Aqmaliyah, E. (2019). Small area estimation on zero-inflated data using frequentist and Bayesian approach. Journal of Modern Applied Statistical Methods, 18(1), eP2677. doi: 10.22237/jmasm/1582727606