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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 08:50:28 -0400

On Wed, Mar 27, 2013 at 7:31 AM, David Hoaglin <[email protected]> wrote:
> Jay,
>
> I would say "one idea," rather than "the idea."  Even if the data
> contain no points of high leverage (which may or may not exert
> disproportionate influence), a transformation of an RHS variable may
> remove nonlinearity in its contribution to the model.  Sometimes a
> transformation both reduces the leverage of high-leverage points and
> removes nonlinearity.

I missed the qualifier "usual", but yes that's definitely true.

Sometimes people use transformations of raw variables to turn them
into another form to deal with nonlinearity. These can be quite
radical, too, such as the tendency to bin data (or even median split)
and reduce to a two sample t-test or ANOVA. Fortunately regression
splines (among other techniques) help. I need to start putting them
into class.
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