This paper presents a conditional mixture, maximum likelihood methodology for performing clusterwise linear regression. This new methodology simultaneously estimates separate regression functions and membership in K clusters or groups. A review of related procedures is discussed with an associated critique. The conditional mixture, maximum likelihood methodology is introduced together with the E-M algorithm utilized for parameter estimation. A Monte Carlo analysis is performed via a fractional factorial design to examine the performance of the procedure. Next, a marketing application is presented concerning the evaluations of trade show performance by senior marketing executives. Finally, other potential applications and directions for future research are identified.
All Science Journal Classification (ASJC) codes
- Mathematics (miscellaneous)
- Psychology (miscellaneous)
- Statistics, Probability and Uncertainty
- Library and Information Sciences