I have a very basic question about linear regression. I have a dataset where the response variable is largely skewed to the right -- if I take a log of it, the distribution becomes a lot closer to normal which should help in terms of prediction (otherwise, the observations out in the tail are always off by a considerable amount).
However, if I take the log of the y variable in my training data set, how do I handle the same variable for the test data set? Do I take the log of this too? Is there something that needs to be done later to get the observations back to their true state?
I'm a beginner in dealing with these types of transformations so any advice would be appreciated.