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Mathematical re-expression, often nonlinear, of data values. Data are often transformed either to meet the assumptions of a statistical model or to make the results of an analysis more interpretable.
6
votes
2
answers
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Regression: zeros in heavy-tailed independent variable from quantization
This question is about handling zeros in an independent variable for a regression.
In particular, the zeros are not missing data or true zeros, but occur because of quantization. As a concrete exampl …
2
votes
2
answers
6k
views
Regressions with long-tail variables (GDP, etc)
It seems common to apply standard linear regression to variables with long-tail distributions, like GDP, by first taking the log. What is the justification for doing that? Is it effectively assuming a …