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  Zero Inflated Binomial Models in Small Area Estimation with Application to Unemployment Data in Indonesia  
  Authors : Budi Hartono; Anang Kurnia; Indahwati
  Cite as:

 

Binary response variables are commonly modeled by binomial models. The binomial overdispersion occurs if the variability is greater than the variance of assumed model. The overdispersion can be caused by excess zeros. The overdispersion may produce underestimated standard error which in turn will produce underestimated p-value. Therefore, Zero Inflated Binomial (ZIB) models are considered to overcome the excess zeros in binomial data. A simulation study is employed to evaluate the performance of models by using RRMSE and relative bias. The simulation showed that the proposed method SAE ZIB has better fit than SAE ZIB Synthetic in terms of the smaller RRMSE. The proposed SAE ZIB method applies to unemployment data to estimate proportion of unemployment in each district/regency during period of August 2016 In Jambi Province, Indonesia. The real data application showed that SAE ZIB method is better than the direct estimates method in terms of the smaller standard error.

 

Published In : IJCSN Journal Volume 6, Issue 6

Date of Publication : December 2017

Pages : 746-752

Figures :03

Tables : 03

 

B. Hartono : master student in Department of Statistics, Bogor Agricultural University. His main interests is on small area estimation.

Dr. A. Kurnia : ccurrently worked as a senior lecture in Department of Statistics, Bogor Agricultural University. He is head in Department of Statistics, Bogor Agricultural University. His main interests is on statistical modellng and small area estimation.

Dr. Indahwati : ccurrently worked as a senior lecture in Department of Statistics, Bogor Agricultural University. His main interests is on statistical modellng, sampling design, and methodology.

 

Small Area Estimation, Zero Inflated Binomial, Unemployment.

Small area estimation with zero inflated binomial model showed that the proposed method SAE ZIB (survey and unsurvey units) has better fit than SAE ZIB Synthetic (survey units only) in terms of the smaller RRMSE. The appropriate initialization values and arrangement of explanatory variables included in the models are important things to overcome the failures in algorithms. This model can be used to estimate proportion of unemployments for each area as well as for each district/regency in Jambi Province, Indonesia. The application to unemployment data results that the proportion estimate of SAE ZIB method is similar with the current publication (4 unemployments of 100 labor forces). Standard error of SAE ZIB method (0.0163) in Jambi Province less than direct estimates method (0.0164). It means the proposed SAE ZIB method is better than the direct estimates method when applied to unemployment data.

 

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