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Inference in latent factor regression with clusterable features

Inference in latent factor regression with clusterable features

Regression models, in which the observed features X∈Rp and the response Y∈R depend, jointly, on a lower dimensional, unobserved, latent vector Z∈RK, with K≪p, are popular in a large array of applications, and mainly used for predicting a response from correlated features. In contrast, methodology and theory for inference on …