Modeling robust regression to factors affecting the exchange rate of Iraqi Dinar

Abstract

Regression analysis is an important statistical tool iteration used, applied in scientific and practical studies. It is considered the method of least squares most methods of estimating the regression model. However, they are affected when there are outlier values in the data of the research. Hence, it is necessary to find robust methods to estimate the regression model.
In this paper, a robust regression model for the exchange rate was built based on influencing factors of GDP, inflation, exposure index and trade. The robust model was found to be more accurate in the Data Visualization, and the conclusions were consistent with economic theory.