Tagged Questions
0
votes
0answers
46 views
Bounded response variable [-1;1] - Should I transform it?
I am planning to use two response variables. One is bounded between 0 and 1, and I guess I can use a binomial (or related) error structure. The second variable is bounded between -1 and 1. I am not ...
6
votes
3answers
281 views
How to model this odd-shaped distribution (almost a reverse-J)
My dependent variable shown below doesn't fit any stock distribution that I know of. Linear regression produces somewhat non-normal, right-skewed residuals that relate to predicted Y in an odd way ...
1
vote
0answers
149 views
Transforming Percent Change: Lognormal Distribution?
I am dealing with a dependent variable relating to the price of an asset and the percent change in the price of that asset. The problem with this type of analysis, like when stocks are the unit of ...
0
votes
0answers
42 views
When to use the raw dataset as opposed to a transformed dataset for computing divergence?
Let us assume I have a set of observations:
Dataset 1: Raw
$A = [a_1,a_2,a_3,a_4,...]$
$B = [b_1,b_2,b_3,b_4,...]$
One assumptions before I proceed: Range of the values that the random variable ...
4
votes
0answers
66 views
Transforming two normal random variables
I'm reviewing for a test, and I am not sure if I am getting the right solution.
Let $X$ and $Y$ be iid $\mathcal{N}(0, \sigma^2)$ random variables.
a. Find the distribution of $U = X^2 + Y^2$, $V = ...
1
vote
1answer
115 views
Variable frequency redistribution
I know that there is a way to "redistribute the frequencies of a variable" as stated here:
Slide number 14 and 15 about redistribution
and here:
Dorian Pyle book chapter 7 section 2 paragraph 3 ...
2
votes
0answers
45 views
Reasoning about an arbitrary transformation function based on observed data
I have two lots of data that have been independently, arbitrarily transformed from the same original data source using the same permutation algorithm. I would like to know what kind of statements I ...
1
vote
0answers
368 views
Weibull distributed data for correlation analysis
On visual inspection of P-P plots, my time data appears to fit a Weibull distribution better than a normal distribution. I will use the variable for correlations and as a predictor in regression. In ...
3
votes
2answers
191 views
Adjusting for tilt of the earth
I have rewritten the old question (below) to hopefully make things a bit clearer.
Basically I think that the temperature of the earth should be normally distributed but is not due to the ‘seasonal ...
8
votes
2answers
8k views
When (and why) to take the log of a distribution (of numbers)?
Say I have some historical data e.g., past stock prices, airline ticket price fluctuations, past financial data of the company...
Now someone (or some formula) comes along and says "let's take/use ...
1
vote
0answers
83 views
How to combine three different scores
I have a population of 300 cases. It's split in three sub-populations 50, 50 and 200 in size.
I have developed three (different) models resulting in a score variable which rank orders each of the ...
3
votes
2answers
1k views
How to split a numeric variable into a binary low-high variable
I have measured frequency of a certain behavior on 15 individuals.
I would like to create two groups based on the amount of this behaviour that was observed (i.e., a group exhibiting high levels of ...
4
votes
2answers
163 views
Categorical or continuous scale for area chart?
I would like to plot the attached income distribution dataset (rendered as an image) as an area chart.
As you can see, personal income is divided into 26 intervals of varying width. I also have the ...
3
votes
3answers
301 views
Does data transformed in a certain way from a normal distribution fit some other common distribution?
I have sampled a number of $x$ values from a normal distribution with mean 0 and sd 0.2. I then transformed these $x$ values to $y$ values using the formula $y = e^x/(e^x + 1)$. I know that the $y$ ...
4
votes
5answers
1k views
How can I determine the best fit normal distribution from this information?
I'm trying to take a normal distribution of points, and force them to become a uniform distribution. I've had little success on S.O., so I thought I'd ask here.
Basically, I have a hash function ...
33
votes
6answers
32k views
In linear regression, when is it appropriate to use the log of an independent variable instead of the actual values?
Am I looking for a better behaved distribution for the independent variable in question, or to reduce the effect of outliers, or something else?
