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I want to do a sensitivity analysis on two variables. I'm trying to do a basic linear regression on the variables $X$ and $Y$ where $X$ is my exogenous variable and $Y$ is my dependent variable. The data I was given for $X$ is given hourly for every month for 10 years while the values of $Y$ were given per year. I was thinking about using the yearly averages for the values of $X$ but I feel like if I did that I would be losing a lot of valuable information as the data from $X$ is so precise. Any help on how I can create this linear regression or perhaps a more fitting tool to conduct a sensitivity analysis is much appreciated.

Daniel
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1 Answers1

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You can fit time series models in $X$ then try to regress.

Scientifica
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Subhasish Basak
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  • Could you elaborate a bit more? To give a bit more insight onto this problem I have $Y$ as yearly yield and $X$ as hourly precipitation and I want to know how sensitive $X$ is with respect to $Y$. – Daniel Sep 02 '15 at 20:55