Polynomial Regression and Measurement Error

Many of the phenomena of interest in information systems (IS) research are nonlinear, and it has consequently been recognized that by applying linear statistical models (e.g., linear regression), we may ignore important aspects of these phenomena. To address this issue, IS researchers are increasingly applying nonlinear models to their datasets. One popular analytical technique for the modeling and analysis of nonlinear relationships is polynomial regression, which in its simplest form fits a "U-shaped" curve to the data. However, the use of polynomial regression can be problematic when the independent variables are contaminated with measurement error, and the implications of error can be m…