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
How to Retire Early from Real Estate Investing
What’s up you guys, it’s Graham here. So, this is a really fun video for me to make because we’re gonna be talking about my favorite topics of all time in one video. That’s right! We got real estate investing, passive income, financial independence, retir…
Why Coca Cola Still Spends Billions On Ads
For over a century, Coca-Cola has been selling the most successful product in the history of humankind. Since its humble beginnings in 1886, when John Pemberton first brewed a mixture of cocoa leaves and cola nuts, Coca-Cola has undergone a remarkable tra…
Ken Griffin: From Starting a Hedge Fund in His Dorm Room to Billionaire Investor
Which brings me to a quote that describes the ethos of Citadel: “Things may come to those who wait, but only those things left by those who hustle.” Now, here’s what I really love about this quote. Who said this? I went off to Harvard to study economics…
Passive Income: How Much You Need Invested To Make $200 Per Day
What’s up you guys? It’s Graham here. So today, we’re going to be finally answering the age-old question that everyone wants to know. It’s something that affects all of us, and it’s a topic that mathematicians and philosophers have been analyzing since th…
UK National Parks in 100 Seconds | National Geographic
[Music] What do the UK’s national parks really look like? To see what these landscapes are made up of, let’s go on a walk. Each second of the walk reveals one percent of our national parks and how they appear from above. Are you ready for the UK’s nationa…
Adding 2-digit numbers without regrouping 1 | Addition and subtraction | 1st grade | Khan Academy
Try to pause the video and figure out what 71 plus 24 is. All right, now let’s do this together. So let’s think about what 71 actually means. Well, we have a one in the ones place. Let me make this clear. So this is the ones place and we have one one. So …