Variable Coefficient Model And Its Application

The coefficients of classical regression model are constants, so it can not meetthe actual needs. In order to reduce bias and improve accuracy, we can allow thecoefficient to be a function of variable. Then the linear model becomes a varyingcoefficients model. Since varying coefficient model can contain many commonmodels, a lot investigators show interest in the model. Although estimate of thevarying coefficient is more difficult than classical linear regression model,sophisticated algorithms could meet the aspirations of the people to analysis the datawith the development of computer technology. Varying coefficient models play animportant role in many fields e.g. biology，medicine, environment, finance and someinformation fields.This paper is a summary of the types of variable coefficients and coefficients ofthe model estimates and has discussed the application of variable coefficient model.The article is organized as follows:The first chapter introduces the associated type variable coefficient model andshows statisticians research.The second chapter introduces the method of local polynomial estimationmethod to estimate the model coefficients with variable coefficients and analysisChongqing house prices.The third chapter shows how to use the least squares method to estimate themodel with variable coefficients and how to use of variable coefficient model topredict the time of sunshine in Chongqing.