Ordered probit using clm2

An embedded and charset-unspecified text was scrubbed...
Name: not available
URL: <https://stat.ethz.ch/pipermail/r-help/attachments/20121106/d2c56a9f/attachment.pl>
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
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

        [[alternative HTML version deleted]]

______________________________________________
R-help at r-project.org mailing list
https://stat.ethz.ch/mailman/listinfo/r-help
PLEASE do read the posting guide http://www.R-project.org/posting-guide.html
and provide commented, minimal, self-contained, reproducible code.

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