I have a data set which looks as following:
Y
1 2
1 1.5
1 2.5
2 5
2 3
3 5.2
3 6
3 6.8
4 6
4 7
And the corresponding plot is:
What kind of regression is appropriate for the above kind of data ?
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$\begingroup$ I think OLS should work fine on this. Effectively it will try to fit a line through the "midpoints" of the cluster of y values having the same x value, with a bigger weight for the bigger clusters. Presumably that is what you want. $\endgroup$ – noob2 Apr 26 '20 at 12:58
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As noob2 suggested, you run a simple OLS regression (in Excel). You get the estimation result $$\hat{y}_i=0.63+1.61x_i$$ with an $R^2=0.84$. That seems to do the job!
You may want to read this about aggregating the $y_i$ values for the same $x_i$ observation.
