Question:

Question about ordinary least squares regression?

by  |  earlier

0 LIKES UnLike

Why would you use logs of Y in a regression calculation instead of just the Y figures..what is the difference

 Tags:

   Report

1 ANSWERS


  1. The two main reasons for making this transformation is to satisfy the normality assumption and homoscedasiticity assumption.  Also, changes in X corresponding to % changes in Y when you use the log transformation.

Question Stats

Latest activity: earlier.
This question has 1 answers.

BECOME A GUIDE

Share your knowledge and help people by answering questions.
Unanswered Questions