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Table 3 Determination of the optimal number of segments

From: Consumer demand heterogeneity and valuation of value-added pulse products: a case of precooked beans in Uganda

No. of segments P ρ 2 LL AIC BIC p-value**
1 6 0.17 3210.53 6433.1 3235.35 <.001
2 21 0.32 2907.61 5857.2 2994.45 <.001
3 36 0.35 2738.23 5548.5 2887.09 <.001
4 51 0.30 2963.71 6029.4 3174.59 <.001
  1. Sample size 3906 choices from 558 consumers, number of observations = 11,718. Equations: ρ2 = 1 − (LL)/LL (o); AIC = − 2LL + 3P and BIC = − LL + (P/2) × ln (N). The LL is a negative number. ** Log-likelihood ratio test (Prob. chi squared value)
  2. In terms of the Log-likelihood, all models tested (a model with 1, 2, 3 and 4 segment(s)) had the same p-value of 0.000. The values of the LL, AIC, BIC, and ρ2 were then used in model selection from which the three-segment met the most required criteria
  3. Italic values indicate a model with the best LL and combination of information criteria
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