Residual analysis in the grouped and censored normal linear model (Q1087296)

Graphical and numerical analysis of residuals can be informative about model misspecification even when data are censored or grouped. This paper provides simple procedures for calculating diagnostic statistics to detect model misspecification when grouped or censored data are analysed using a normal linear model. Graphs can reveal the nature of the correlations that these statistics pick up but when grouping or censoring is severe they can be difficult to interpret. We discuss the processing of graphs so that they are more easily interpreted and provide examples based on artificial data and on grouped data relating to unemployment durations.