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Re: st: Using natural logs on RHS of maximum likelihood models


From   "JVerkuilen (Gmail)" <[email protected]>
To   [email protected]
Subject   Re: st: Using natural logs on RHS of maximum likelihood models
Date   Wed, 27 Mar 2013 00:41:53 -0400

On Tue, Mar 26, 2013 at 10:18 PM, David Hoaglin <[email protected]> wrote:

 someone else reading this list may be able
> to recommend a book that discusses this and other steps in the
> model-building process and shows how they work on actual sets of data.
>

A. C. Atkinson. 1986. Plots, Transformations and Regression: An
Introduction to Graphical Methods of Diagnostic Regression Analysis.
Oxford.

Has a chapter on GLMs. (Not coincidentally the book cites work by
David Hoaglin.)

Anyway, the idea behind log-transforming an RHS variable would be to
reduce high leverage points induced by a long right tailed
distribution such as income, wage, or something like that. It poses no
in principle problems but of course a log-transformed variable is not
the same as the oroginal variable.
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