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5.1 Introduction
5.1 Introduction
Data Transformation
Subject-Matter Knowledge
Weighted Least Squares
Transformation
y = y (no transformation)
y = y (square root; Poisson data)
2 E(y)[1 E(y)]
2 [E(y)]2
2 [E(y)]3
2 [E(y)]4
0 yi 1)
y = ln(y) (log)
y = y-1/2 (reciprocal square root)
y = y-1 (reciprocal)
Example 5.1
An electric utility is interested in developing a model
relating peak-hour demand, y, to total energy usage during
the month, x. This is an important planning problem
because while most customers pay directly for energy
usage, the generation system must be large enough to
meet the maximum demand imposed. Data for 53
residential customers for the month of August are shown
in Table 5.2, and a scatter diagram is given in Figure 5.1.
A simple linear regression model is assumed and the leastsquares fit is:
y = -0.8313+ 0.00368x
Example 5.1
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y 0e
ln y ln 0 1 x ln
y 0 1 x
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Note:
Least-squares estimator has least-squares
properties with respect to the transformed
data, not original data.
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where
mean of the observations.
The model to be fit is
Linear Regression Analysis 5E
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is the geometric
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Restaurant
Food sales
Data
partial table.
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Residual plot
indicates a
nonconstant
variance problem.
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Restaurant
Food sales
Data
partial table.
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Comments:
1. have several near
neighbors in the x
space;
2. Be caution when
Regression Analysis 5E
estimating the weightsLinear
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Random Effects
Regression models can have random effects (that
is, factor levels selected at random), and they
represent another source of variability
REML (residual maximum likelihood) is the
preferred method of analysis
REML will estimate the variance component
associated with the random effect
REML is a two-sage iterative procedure
Implemented in JMP and SAS
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