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Chapter 12: Transformations and regression

Chapter 12: Transformations and regression

pp. 183-214

Authors

, Columbia University, New York, , New York University, , Aalto University, Finland
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Summary

It is not always best to fit a regression using data in their raw form. In this chapter we start by discussing linear transformations for standardizing predictors and outcomes in a regression, which connects to “regression to the mean,” earlier discussed in Chapter 6, and how it relates to linear transformations and correlation. We then discuss logarithmic and other transformations in the context of a series of examples in which input and outcome variables are transformed and combined in various ways in order to get more understandable models and better predictions. This leads us to more general thoughts about building and comparing regression models in an applied context, which we develop in the context of an additional example.

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