Questions
Questions

QBUS6810 (ND) Week 2 Quiz

Multiple choice

Which of these are possible advantages of performing a log transformation of the response variable in regression modelling? 

Options
A.Ensuring that the errors have zero conditional mean
B.Reducing the impact of outliers
C.Eliminating perfect multicollinearity
D.Modelling certain types of nonlinearity
E.Stabilising the variance of the errors
F.Reducing skewness in the regression errors
G.Removing leverage points
H.Ensuring that the errors are independent from each other
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Question restatement: Which of these are possible advantages of performing a log transformation of the response variable in regression modelling?\n\nOption 1: Ensuring that the errors have zero conditional mean. This is not a direct consequence of applying a log transformation to the response. The zero conditional mean is an assumption about the error term given the predictors in the regression model, not something ensured by transforming the response alone. Transformations can help wit......Login to view full explanation

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