in regression analysis, a transformation is used when. course hero

What is a data transformation?

Such data transformations are the focus of this lesson. To introduce basic ideas behind data transformations we first consider a simple linear regression model in which: We transform the predictor ( x) values only. We transform the response ( y) values only. We transform both the predictor ( x) values and response ( y) values.

What are transforming response and/or predictor variables?

Transforming response and/or predictor variables therefore has the potential to remedy a number of model problems. Such data transformations are the focus of this lesson. To introduce basic ideas behind data transformations we first consider a simple linear regression model in which:

Does data transformation require a trial and error approach?

You will discover that data transformation definitely requires a "trial and error" approach. In building the model, we try a transformation and then check to see if the transformation eliminated the problems with the model.

Does data transformation require trial and error?

You will discover that data transformation definitely requires a "trial and error" approach. In building the model, we try a transformation and then check to see if the transformation eliminated the problems with the model. If it doesn't help, we try another transformation and so on. We continue this cyclical process until we've built a model that is appropriate and we can use. That is, the process of model building includes model formulation, model estimation, and model evaluation:

Can we transform predictors?

We transform the predictor ( x) values only.