Ordered probit using clm2
Hi Alice, A factor is a fairly basic R concept that you can read about in http://cran.r-project.org/doc/manuals/R-intro.pdf on page 16. Now to fit the CLM, you need to turn your response variable into a factor with something like datareg$Newpercentagecash <- factor(datareg$Newpercentagecash, ordered=TRUE) after loading your data, but before fitting the model. I recommend that you take a look at the variable to see that it has the levels that you expect and that they are ordered appropriately. And by the way, I recommend that you use clm() rather than clm2() if possible. Hope this helps, Rune
On 6 November 2012 23:00, Alice LAMBERTON <alice.lamberton at edhec.com> wrote:
Hi, I am new in R. I would like to do a ordered probit regression using clm2 (in the ordinal package). My dependent variable y is the way of payment in M&A: y=0 if the deal is financed by stock only, y=1 if the deal is financed by a mix of cash and stock and y=2 if it is by cash only. My independent variables are CollateralB, Cashavailable and Leverage. This is the code I wrote:
library(ordinal)
datareg<-read.xls("C:/regression.xls")
myprobit<-clm2(Newpercentagecash ~ CollateralB + CashavailableB + LEVERAGEB, data = datareg, link = "probit")
Error in clm2(Newpercentagecash ~ CollateralB + CashavailableB + LEVERAGEB, :
response needs to be a factor
I do not understand this error message. My "y" only equals 0, 1 or 2. I do not understand what a "factor" is.
Could you help me please?
Thank you in advance,
Best regards,
Alice
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Rune H B Christensen, PhD DTU Informatics, Section for Statistics Technical University of Denmark, Build. 305, Room 122, DK-2800 Kgs. Lyngby, Denmark Phone: (+45) 45 25 33 63 Mobile: (+45) 30 26 45 54