How to Build a Regression Model for Discontinuous Data

We’ll study how to model one commonly occurring case of discontinuous data

Most real-world processes that generate data are at the mercy of real-world events. Stock prices plunge and soar in response to quarterly results announcements and news of natural and man-made disasters. Macroeconomic indicators such as unemployment and oil prices undergo sudden trend reversals in response to the onsets of financial crisis, recession, and supply shocks.

Take any real-world time series data collected over a long enough period of …

data data science python regression regression-analysis statsmodels