202406071433
Status: #idea
Tags: Transformations
State: #nascient

Linearizing Transformations

Similarly to Variance Stabilizing Transformations, we do transformations on the dependent variable.

Y = ${\beta }_0{e}_i^{\beta }X\epsilon$

In this case, if $Y$ is an exponential variable, we willy apply a $ln$ on both sides of the equation such that:

We can now create a linear model:

where ${\beta }_0^{\prime }$ and ${\epsilon }^{\prime }$ are equal to their $ln$ counterparts.

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