What's the best estimation option?

[sirooskhadem]

Hi All,

I need to run a regression where the dependent variable is a rating number (simply 1 to 5) and independent variables are 4 ratios which when we add them all they will always be equal to 1.
Attached is a snapshot of the data and I would be grateful if you could help me picking the right estimation method and also if I need to take account for any statistical/econometric issues?

Cheers,
Siroos

Screenshot_20221112_145218_Chrome.jpg (459.22 KiB) Viewed 3098 times

[startz]

The best option is an ordered logit or probit. Just be sure not to include a constant so as to avoid perfect multicollinearity.

[sirooskhadem]

Thanks very much!