Review of Non Parametric Regression and its application using SAS software

Abstract

This paper aims to demonstrate the benefits of adopting a nonparametric regression approach when the standard regression model is not appropriate. It also provides an overview of circumstances where a nonparametric approach might not only be beneficial, but necessary. Many statistical methods require assumptions to be made about the format of the data to be analysed. There are situations in which even transformed data may not satisfy the assumptions, however in these cases it may be inappropriate to use traditional parametric methods of analysis. Nonparametric methods provide an alternative series of statistical methods that require no or very limited assumptions to be made about the data. There are a wide range of methods that can be used in different circumstances, but in this study we will describe the practical advantages of nonparametric regression by presenting the fundamental concepts of regression and modelling, and by discussing their desirable forms with practical example. The power of SAS in analysing data patterns and developing such models is also demonstrated appropriate and relevant portions of SAS code are included where ever it is possible.