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a problem about WLS

3 messages · jacquesliu, Thomas Lumley

#
I was asked to do a WLS estimation, so I thought of lm() with weights like
wls=lm(Y~X-1,weight=INC)

however, it gives different result as below code, which use the formula of
WLS
y<-Y*INC^-0.5
x<-X*INC^-0.5
wls=lm(y~x-1)

Can anybody explain to me why the first code can not give the right answer?
Many thanks

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#
On Thu, Jul 5, 2012 at 11:40 AM, jacquesliu <jacquesliu at gmail.com> wrote:
The two examples are using the opposite weights.  To replicate the
answer from the second approach with lm, use weight=INC^-1

In lm(), observations with high weights have more, um, weight. They
influence the results more than observations with low weight.  Your
code does the opposite.

   -thomas
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Thomas Lumley
Professor of Biostatistics
University of Auckland