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Error message and question about results

Hello,
I wolud like to know what this message means? I don't get what I need to do, or what's wrong.

Message:
Randomized First Choice is set to apply correlated error for all attributes , which may lead to poor results for price attributes. Please visit the RFC settings to change which attributes have correlated error applied.

Then, when I run the simulation for LC, I don't get the results for each segment but an overall result (shares of prefernce) when running a RFC. How can I get the results for each segment?

Please help me out!
asked Nov 7 by Jill

1 Answer

0 votes
Jill,

The message regarding Randomized First Choice regards how the algorithm works with price attributes.  RFC applies correlated error to attributes to assist in addressing IIA issues coming from products being similar.  However this is not a good idea for those attributes representing price.  If you have a price attribute, you should turn off correlated error by going to the scenario's Settings ribbon, and clicking the gear next to drop-down where Randomized First Choice is selected.  If you don't have any price attributes, there is an option in those settings to disable the warning.

The utilities produced by Latent Class are (pseudo) individual-level utilities.  If you would like a breakout by segment, you can select the appropriate segment by clicking on Segments on the scenario's Settings ribbon and choosing the appropriate segment.
answered Nov 8 by Walter Williams Gold Sawtooth Software, Inc. (14,100 points)
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