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Optimal power transformation via inverse response plots

Charles Lindsey () and Simon Sheather ()
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Simon Sheather: Texas A & M University

Stata Journal, 2010, vol. 10, issue 2, 200-214

Abstract: We present a new Stata command, irp, that generates the inverse response plot (Cook and Weisberg, 1994, Biometrika 81: 731–737) of a response on its predictors. Using the inverse response plot, an appropriate scaled power transformation for the positive response variable can be found so that the trans- formed response mean is linear in the predictors. The optimal transformation is displayed in the plot, as are user-specified guesses. By using the graphical display, the user may determine whether an appropriate transformation exists as well as determine its value. We demonstrate the irp command using both a generated and a real example. Copyright 2010 by StataCorp LP.

Keywords: irp; regress; scaled power transformation (search for similar items in EconPapers)
Date: 2010
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