topic Re: Regression with at least 15 observations? in New SAS User

Regression with at least 15 observations?

amanjot_42 — Tue, 21 May 2019 04:08:46 GMT

Hi guys,

I am trying to perform regression analysis on my dataset, but I have one condition that the number of observations should be at least 15 in order to do the regression part. My data looks like:

Cusip Year SIC Sales Assets

10000 2000 11 12 15

10000 2001 11 13 18

10000 2002 11 10 20

10000 2003 11 9 25

11000 2000 8 5 25

11000 2001 8 6 28

11000 2002 8 7 29

11000 2003 8 5 28

12000 2003 11 6 30

12000 2004 11 7 25

13000 2002 10 9 10

13000 2003 10 10 15

13000 2004 10 5 20

13000 2005 10 5 25

13000 2006 10 6 20

13000 2007 10 7 20

I want to regress sales against assets by industry and years. So, basically, cross-sectional regressions for each year across industries. But for this, I need to have at least 15 observations for each year regression.

Please suggest me!

Regards

Re: Regression with at least 15 observations?

PaigeMiller — Tue, 21 May 2019 13:16:10 GMT

It's not clear what you are asking. Are you saying you want different regressions for every year in your data, and each year has to have at least 15 observations, and your question is what to do if you don't have 15 observations for each year? Well, obviously, running regressions is not possible under the condition that you have at least 15 observations for each year, you don't have enough data. You have to go out and collect more data, or simply not do the regressions.

I have never heard of such a restriction. The whole point of doing any statistical analysis is to see if, in layman's terms, if the signal is greater than the noise. Signal can be greater than noise with 5 observations, or signal can be less than noise with 500 observations. Why don't you just run the regression and see?

Re: Regression with at least 15 observations?

amanjot_42 — Tue, 21 May 2019 13:30:19 GMT

Thanks,
I have panel data of firm-years. So, for each year (for different industries), I want to run a cross sectional analysis with at least 15 firms present in one industry sector (SIC).

Re: Regression with at least 15 observations?

PaigeMiller — Tue, 21 May 2019 13:35:32 GMT

So, is your question: what should you do if you don't have 15 data points for each year/SIC combination?

Re: Regression with at least 15 observations?

amanjot_42 — Tue, 21 May 2019 13:57:19 GMT

Skip regression for that,