--- title: "Exercise 8.14" author: "Per August Jarval Moen" date: "2024" output: pdf_document --- ```{r setup, include=FALSE} knitr::opts_chunk$set(echo = TRUE) ``` In exercise 7.31 we used a Poisson GLM to investigate the relationship between race and the number of victims of homicide a person knows. We found that the Poisson GLM was overdispersed, and fitted a Negative Binomial model to account for the overdispersion. An alternative is to fit a Quasi-Poisson model which allows for overdispersion. Let the notation be as in exercise 7.31. When applying a QL method, we drop the distributional assumption, and assume only that \begin{align*} \mathbb{E}(Y_i) &= \mu_i = \exp(\beta_0 + \beta_1 x_i), \intertext{and, } \text{Var}(Y_i) &= \phi \mu_i, \end{align*} for some $\phi>0$. As described in the book and lectures, the QL estimates of $\beta_0, \beta_1$ will be the same as with the Poisson GLM. The only difference from the Poisson GLM is that estimated standard errors of $\hat{\beta}_0$ and $\hat{\beta}_1$ should be multiplied by $\sqrt{\hat{\phi}}$, where $\hat{\phi}$ is the generalized Pearson statistic (which estimates $\phi$). \newline\newline Let us fit the models and compare the point estimates and estimated standard errors. ```{r } library(MASS) url = "http://users.stat.ufl.edu/~aa/glm/data/Homicides.dat" data = read.table(url, header=TRUE) data = data[,c("race", "count")] #removing observation number poisson.model = glm(count~race, family=poisson(link="log"),data=data) QL.model = glm(count ~ race , family = quasi(link = "log", variance = "mu"), data = data) negbin.model = glm.nb(count~race,link="log",data=data) ``` \leavevmode \newline The point estimates from the Poisson GLM and QL method are: ```{r ,echo=FALSE} summ = summary(poisson.model) summ$coefficients[,"Estimate"] ``` The point estimates from the Negative Binomial model are: ```{r ,echo=FALSE} summ2 = summary(negbin.model) summ2$coefficients[,"Estimate"] ``` The estimated standard errors under the Poisson model are ```{r ,echo=FALSE} summ$coefficients[,"Std. Error"] ``` The estimated standard errors from the Quasi-Poisson model are ```{r ,echo=FALSE} summ3 = summary(QL.model) summ3$coefficients[,"Std. Error"] ``` The estimated standard errors under the Negative Binomial model are ```{r ,echo=FALSE} summ2$coefficients[,"Std. Error"] ``` We see that the estimated standard errors from the Negative Binomial model and the Quasi-Poisson model are quite similar, and both are larger than the estimated standard errors from the Poisson model.