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# Box-Cox Transformation Example

1600

1400

1200

1000

800

600

400

200

0.5

1.5

2.5

-200
X

y = -139.91x
+ 534.89 4
3.5

4.5

## Box-Cox Transformation Example

Goal: Find the value of lamba which minimizes SSE.
Y and X columns (capacity: 50) can be replaced with new data if desired
-2.90584
11.08878
395.0389
W
10.58626
9.485098
7.915637
27.814
15.14745
5.335204
7.094267
5.5539
3.987666
3.601821
4.986075
4.030748
3.662846
2.897483
3.902307
2.978427
1.516444
1.035433
2.12051
2.024961
0.902572
1.015813
1.315933
1.361645
1.654972

## Box-Cox Transformation Example

W-hat
11.08878
11.08878
11.08878
11.08878
11.08878
8.182941
8.182941
8.182941
8.182941
8.182941
5.277099
5.277099
5.277099
5.277099
5.277099
2.371257
2.371257
2.371257
2.371257
2.371257
-0.53459
-0.53459
-0.53459
-0.53459
-0.53459

Residual
-0.50252
-1.60369
-3.17315
16.72521
4.058671
-2.84774
-1.08867
-2.62904
-4.19528
-4.58112
-0.29102
-1.24635
-1.61425
-2.37962
-1.37479
0.60717
-0.85481
-1.33582
-0.25075
-0.3463
1.437158
1.550398
1.850519
1.896231
2.189557

Slope
Intercept
SSE
Y'
510.691
457.6738
382.1098
1340.145
730.2962
257.8712
342.5638
268.4006
192.992
174.4149
241.0618
195.0662
177.353
140.5035
188.8822
144.4007
74.01142
50.8524
103.0951
98.49469
44.45566
49.9078
64.35753
66.55839
80.68101

30
25
20
15
10
5
0
-5 0

y = -2.9058x + 11.089

Original Data

Lambda:
2.4
K2
8.51632
K1
0.02077
Y
X
13.44
0
12.84
0
11.91
0
20.09
0
15.6
0
10.11
1
11.38
1
10.28
1
8.96
1
8.59
1
9.83
2
9
2
8.65
2
7.85
2
8.88
2
7.94
3
6.01
3
5.14
3
6.9
3
6.77
3
4.86
4
5.1
4
5.67
4
5.75
4
6.23
4

25
20
15
10
5
0
0

4
X

Y'

## Box-Cox Transformation Example:

Y' vs. X
1600
1400
1200
1000
800
600
400
200
0
-200 0

y = -139.91x + 534.89

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X