Comparing Regression Models with and without Data Transformation

Constant for the Regression Model y

bx

e

Transformed Data Untransformed Data

b = 0.272202 b = 0.234158

This Demonstration shows the difference between regression models with and without data transformation. The transformed case estimates

b

by minimizing the sum of squared differences between

ln(y)

and

bx

. The untransformed case estimates

b

by minimizing the sum of squared differences between

y

and

bx

e

.