What are the effects of log transformation on data?
Log transformation can stabilize variance, make data more normally distributed, and improve linearity.
Can you explain how it stabilizes variance?
Sure! Log transformation reduces the impact of extreme values, which helps in stabilizing the variance across the dataset.
Are there any downsides to using log transformation?
Yes, it can make interpretation of results more complex, especially for non-technical audiences.
When should I consider using log transformation?
Consider it when your data is skewed, has outliers, or when you want to meet the assumptions of parametric tests.
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