Transcription of Linear Regression Models with Logarithmic Transformations
{{id}} {{{paragraph}}}
Example: air traffic controller
Linear Regression Models with Logarithmic Transformations
Linear Regression Models with Logarithmic TransformationsKenneth Benoit Methodology InstituteLondon School of 17, 20111 Logarithmic Transformations of variablesConsidering the simple bivariate Linear modelYi= + Xi+ i,1there are four possible com-binations of Transformations involving logarithms: the Linear case with no Transformations , thelinear-log model , the log- Linear model2, and the log-log Yi= + Xi Yi= + logXilogYlog-linearlog-loglog Yi= + Xilog Yi= + logXiTable 1: Four varieties of Logarithmic transformationsRemember that we are usingnaturallogarithms, where the base ise Logarithms mayhave other bases, for instance the decimal logarithm of base 10.
For small p, approximately log([100 + p]=100) ˇ p=100. For p = 1, this means that =^ 100 can be interpreted approximately as the expected increase in Y from a 1% increase in X 3.3 Log-linear model: logYi = + Xi + i In the log-linear model, the literal interpretation of the estimated coefficient ^ is that a one-unit
Loading..
Tags:
Information
Domain:
Source:
Link to this page:
Please notify us if you found a problem with this document: