Tobit

A Tobit model is a statistical method used when analyzing situations where the outcome variable is only observed within a certain range. For example, it’s suitable when measuring amounts that can’t go below zero or above a specific limit, like household expenses or test scores. If data points are "censored"—meaning some are only known to be above or below a threshold—the Tobit model accounts for this to provide more accurate estimates. Essentially, it combines elements of regression with special handling of these limits, helping researchers understand relationships in data with boundary constraints.