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Publication date: 09/28/2021

Analyze Censored Data Using the Nonlinear Platform

You can analyze left-censored data using the Nonlinear platform. For the left-censored data, zero is the censored value because it also represents the smallest known time for an observation.

Note: The Tobit model is popular in economics for responses that must be positive or zero, with zero representing a censored point.

Note the following about the Tobit2.jmp data table:

The response variable is a measure of the durability of a product and cannot be less than zero (Durable, is left-censored at zero).

Age and Liquidity are independent variables.

The table also includes the model and Tobit loss function. The model in residual form is durable-(b0+b1*age+b2*liquidity). To see the formula associated with Tobit Loss, right-click the column and select Formula.

Fit the Tobit model:

1. Select Help > Sample Data Library and open Reliability/Tobit2.jmp.

2. Select Analyze > Specialized Modeling > Nonlinear.

3. Select Model and click X, Predictor Formula.

4. Select Tobit Loss and click Loss.

5. Click OK.

6. Click Go.

7. Click Confidence Limits.

Figure 14.13 Solution Report 

Solution Report

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