yego.me
💡 Stop wasting time. Read Youtube instead of watch. Download Chrome Extension

Transforming nonlinear data | More on regression | AP Statistics | Khan Academy


2m read
·Nov 11, 2024

So we have some data here that we can plot on a scatter plot that looks something like that.

And so the next question, given that we've been talking a lot about lines of regression or regression lines, is can we fit a regression line to this?

Well, if we try to, we might get something that looks like this or maybe something that looks like this.

I'm just eyeballing it, obviously. We could input it into a computer to try to develop a linear regression model to try to minimize the sum of the squared distances from the points to the line, but you can see it's pretty difficult.

And some of you might be saying, well, this looks more like some type of an exponential, so maybe we could fit an exponential to it.

So it could look something like that, and you wouldn't be wrong.

But there is a way that we can apply our tools of linear regression to this data set.

And the way we can is instead of plotting x versus y, we can think about x versus the logarithm of y.

So this is the exact same data set. You see the x values are the same, but for the y values, I just took the log base 10 of all of these.

10 to the what power is equal to 2307.23?

10 to the 3.36 power is equal to 2307.23, and I did that for all of these data points.

I did it on a spreadsheet, and if you were to plot all of these, something neat happens.

All of a sudden, when we're plotting x versus the log of y or the log of y versus x, all of a sudden it looks linear.

Now be clear, the true relationship between x and y is not linear; it looks like some type of an exponential relationship.

But the value of transforming the data—and there are different ways you can do it—in this case, the value of taking the log of y and thinking about it that way is now we can use our tools of linear regression.

Because this data set, you could actually fit a linear regression line to this quite well.

You could imagine a line that looks something like this; it would fit the data quite well.

And the reason why you might want to do this versus trying to fit an exponential is because we've already developed so many tools around linear regression and hypothesis testing around the slope and confidence intervals, and so this might be the direction you want to go at.

And what's neat is once you fit a linear regression, it's not difficult to mathematically unwind from your linear model back to an exponential one.

So the big takeaway here is that the tools of linear regression can be useful even when the underlying relationship between x and y are non-linear.

And the way that we do that is by transforming the data; here we took a logarithm of the y's, and that helped us see a more linear relationship of log y versus x.

More Articles

View All
SELLER ACCEPTED MY OFFER - BUYING MY 6TH PROPERTY!
What’s up, you guys? It’s Graham here! So, I realized it’s been quite some time since I made a video standing up. But this is the perfect time to make a standing up video because I have some good news to share with you guys. Spoiler alert: I ended up get…
Renewable Energy For the People | From the Ashes
Here we are in one of the reddest cities and one of the reddest counties in one of the reddest states. But we put the silly national politics aside to do what’s best for the people we were elected to serve. The best thing to do was to sign contracts for …
How NOT to Invest In Real Estate!!
Lots of you guys! It’s great here. So, when it comes to investing in real estate, just like anything else out there, there is a right way to do it too and a wrong way to do it. And since I have a bajillion videos on my channel already about exactly what y…
11 SIGNS That You SHOULD END EVERY RELATIONSHIP even it's your family or friend | STOICISM INSIGHTS
Have you ever felt like you’re at a crossroads, holding onto a relationship or friendship because it’s comfortable, familiar, but deep down you know it’s holding you back from truly flourishing? It’s a tough pill to swallow, realizing that sometimes the p…
Long-run economic profit for perfectly competitive firms | Microeconomics | Khan Academy
Let’s dig a little bit deeper into what happens in perfectly competitive markets in the long run. So, what we have on the left-hand side—and we’ve seen this multiple times already—are our supply and demand curves for our perfectly competitive market. You…
10 Stocks the Smart Money is Buying for 2021
[Music] Hey guys, welcome back to the channel! In this video, we’re going to be talking about the top 10 most bought stocks by the big investors of the world as we lead into 2021. You might ask, “Well, how the hell do you know that, Brandon?” And the reas…