Hi everyone,

I was reviewing a regression analysis for a colleague the other day. I know that linear regression works fine with negative values for the Y variable. But then I noticed that 20% of the values for the response = 0 exactly. Because of this, I doubt that the model is correctly specified amongst other things. I've never worked with what I would call 'non-positive and zero-inflated continuous data'. Can anyone suggest an alternative? I thought about just leaving out the observations with 0 and analyzing them on their own (in some other fashion). Any help is appreciated.

On second thought, here's an additional note:

The response variable represents amount of money added or subtracted from another value.

But, this data includes all negative values and 20% zeros. So, we are essentially estimating the amount of money we are subtracting away.

But, since it's a monetary value I can just flip the sign and interpret the number accordingly.

Thus, I can say I have zero-inflated non-negative continuous data.

I was reviewing a regression analysis for a colleague the other day. I know that linear regression works fine with negative values for the Y variable. But then I noticed that 20% of the values for the response = 0 exactly. Because of this, I doubt that the model is correctly specified amongst other things. I've never worked with what I would call 'non-positive and zero-inflated continuous data'. Can anyone suggest an alternative? I thought about just leaving out the observations with 0 and analyzing them on their own (in some other fashion). Any help is appreciated.

On second thought, here's an additional note:

The response variable represents amount of money added or subtracted from another value.

But, this data includes all negative values and 20% zeros. So, we are essentially estimating the amount of money we are subtracting away.

But, since it's a monetary value I can just flip the sign and interpret the number accordingly.

Thus, I can say I have zero-inflated non-negative continuous data.

Last edited: