Linear Regression for Business Statistics
Natural Log transformation in a Regression Model.
Example: Annual demand for cocoa in million pounds over a period of time.
Linear Regression for Business Statistics
Natural Log transformation in a Regression Model.
Example: Annual demand for cocoa in million pounds over a period of time.
Linear Regression for Business Statistics
Natural Log transformation in a Regression Model.
Example: Annual demand for cocoa in million pounds over a period of time.
Linear Regression for Business Statistics
Natural Log transformation in a Regression Model.
Example: Annual demand for cocoa in million pounds over a period of time.
Linear Regression for Business Statistics
Natural Log transformation in a Regression Model.
Example: Annual demand for cocoa in million pounds over a period of time.
Linear Regression for Business Statistics
Natural Log transformation in a Regression Model.
Example: Annual demand for cocoa in million pounds over a period of time.
Linear Regression for Business Statistics
Natural Log transformation in a Regression Model.
Example: Annual demand for cocoa in million pounds over a period of time.
Linear Regression for Business Statistics
Natural Log transformation in a Regression Model.
Example: Annual demand for cocoa in million pounds over a period of time.
Linear Regression for Business Statistics
Natural Log transformation in a Regression Model.
Example: Annual demand for cocoa in million pounds over a period of time.
Log-log as well as the Semi-log interpretation.
Linear Regression for Business Statistics
Natural Log transformation in a Regression Model.
Example: Annual demand for cocoa in million pounds over a period of time.
Log-log as well as the Semi-log interpretation.
1 and 2 is a log-log interpretation, a.k.a. Elasticity interpretation.
Linear Regression for Business Statistics
Natural Log transformation in a Regression Model.
Example: Annual demand for cocoa in million pounds over a period of time.
Log-log as well as the Semi-log interpretation.
1 and 2 is a log-log interpretation, a.k.a. Elasticity interpretation.
3 is a semi-log interpretation, a.k.a. Growth Rate interpretation.
Linear Regression for Business Statistics
Natural Log transformation in a Regression Model.
Natural logs may be taken for reasons other than improving
R-square.
Linear Regression for Business Statistics
Natural Log transformation in a Regression Model.
Natural logs may be taken for reasons other than improving
R-square.
When we want ‘Betas’ to be interpreted as Elasticities or Growth
Rates.
Linear Regression for Business Statistics
Natural Log transformation in a Regression Model.
Natural logs may be taken for reasons other than improving
R-square.
When we want ‘Betas’ to be interpreted as Elasticities or Growth
Rates.
Two main reasons for taking a natural log transformation.
1. Improve Linearity.
2. Have ‘Betas’ be interpreted as Elasticities or Growth Rates.
Linear Regression for Business Statistics
Natural Log transformation in a Regression Model.
Natural logs may be taken for reasons other than improving
R-square.
When we want ‘Betas’ to be interpreted as Elasticities or Growth
Rates.
Two main reasons for taking a natural log transformation.
1. Improve Linearity.
2. Have ‘Betas’ be interpreted as Elasticities or Growth Rates.
Linear Regression for Business Statistics
Natural Log transformation in a Regression Model.
Natural logs may be taken for reasons other than improving
R-square.
When we want ‘Betas’ to be interpreted as Elasticities or Growth
Rates.
Two main reasons for taking a natural log transformation.
1. Improve Linearity.
2. Have ‘Betas’ be interpreted as Elasticities or Growth Rates.
Linear Regression for Business Statistics
Natural Log transformation in a Regression Model.
Natural logs may be taken for reasons other than improving
R-square.
When we want ‘Betas’ to be interpreted as Elasticities or Growth
Rates.
Two main reasons for taking a natural log transformation.
1. Improve Linearity.
2. Have ‘Betas’ be interpreted as Elasticities or Growth Rates.
Linear Regression for Business Statistics
Natural Log transformation in a Regression Model.
Predict the cocoa demand for the following year and build a 95%
confidence interval around the prediction.
Assume, for the following year, the price to be 1.15$ per pound and
the per-capita income to be 40,000$.
Linear Regression for Business Statistics
Natural Log transformation in a Regression Model.
Predict the cocoa demand for the following year and build a 95%
confidence interval around the prediction.
Assume, for the following year, the price to be 1.15$ per pound and
the per-capita income to be 40,000$.
Linear Regression for Business Statistics
Natural Log transformation in a Regression Model.
Predict the cocoa demand for the following year and build a 95%
confidence interval around the prediction.
Assume, for the following year, the price to be 1.15$ per pound and
the per-capita income to be 40,000$.
Linear Regression for Business Statistics
Natural Log transformation in a Regression Model.
Predict the cocoa demand for the following year and build a 95%
confidence interval around the prediction.
Assume, for the following year, the price to be 1.15$ per pound and
the per-capita income to be 40,000$.
Linear Regression for Business Statistics
Natural Log transformation in a Regression Model.
Predict the cocoa demand for the following year and build a 95%
confidence interval around the prediction.
Assume, for the following year, the price to be 1.15$ per pound and
the per-capita income to be 40,000$.
Linear Regression for Business Statistics
Natural Log transformation in a Regression Model.
The Log-log Model.
The Semi-log Model.
