Data Transformations

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Changing variables through data transformations may lead to a simplified relationship between the transformed predictor variable and the transformed response. As a result, model descriptions and predictions may be simplified.

Common transformations include the logarithm ln(y), and power functions such as y1/2, y-1, and so on. Using these transformations, you can linearize a nonlinear model, contract response data that spans one or more orders of magnitude, or simplify a model so that it involves fewer coefficients.

For example, suppose you want to use the following model to fit your data.

If you decide to use the power transform y-1, then the transformed model is given by

As another example, the equation

becomes linear if you take the log transform of both sides.

You can now use linear least squares fitting procedures.

There are several disadvantages associated with performing transformations:

Deciding on a particular transformation is not always obvious. However, a scatter plot will often reveal the best form to use. In practice you can experiment with various transforms and then plot the residuals from the command line using the transformed scale. If the errors are reasonable (they appear random with minimal scatter, and don't exhibit any systematic behavior), the transform is a good candidate.

  


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