Thank you for the timely response!
I have understood the interpretation of Proc GAM graphical output.
1) Generalized Additive Model (GAM) : Y = B0 + S(X) ; (This says the relationship between Y and X is unknown and S(X) is a function with unknown relationship)
2) GAM separates out the linear and non-linear trend of the predictor variable to Y = B0 + B1(X) + F(X); (where B1(X) is the linear part and F(X) is the non-linear part)
3) Estimates are computed separately for the linear part and the non-linear part
The predictions from non-linear part (called as partial predictions) are plotted against the predictor variable in the figure. Thus the figure depicts the non-linearity part of the relationship between Y and X (if at all there is any). If there is no non-linearity no curve would be generated.
Krishnan
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