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Use matrix scatter plot and visually decide if a linear model is appropriate
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Question Answered step-by-step .. 1. Use matrix scatter plot and visually decide if a linear model is appropriate 2. If the relation is not linear, transform the data according... ly. Try logarithm, exponential, square root, square, etc., for Y and/or X until you see a linear relation. You only need to report what is the transformation chosen, 3. Use an OLS model for the original and transformed data if required. Evaluate if the OLS assumptions are met: normality of errors centered around zero, equal variance, etc..., for the original data and transformed data if appropriate. Comment how the transformation impacted the different assumptions. (This should be done only by looking at the output diagnostic charts created by the software) If datasets have outliers, remove the outliers and see the effect in the model (slope, intercept and R-square) [Show More]
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