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Exam AIP-210 Topic 3 Question 80 Discussion

Actual exam question for CertNexus's AIP-210 exam
Question #: 80
Topic #: 3
Your dependent variable Y is a count, ranging from 0 to infinity. Because Y is approximately log-normally distributed, you decide to log-transform the data prior to performing a linear regression.
What should you do before log-transforming Y?

Suggested Answer: A Vote an answer

Explanation
Before log-transforming Y, we should add 1 to all of the Y values. This is because log transformation is undefined for zero or negative values, and some of the Y values may be zero. Adding 1 to all of the Y values can avoid this problem and ensure that the log transformation is valid and meaningful. Adding 1 to all of the Y values is also known as a log-plus-one transformation.

by Fitch at Nov 22, 2024, 02:04 AM

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