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SOLVED:The logarithm transformation pulls in the long tail of a skewed distribution. It is common to use logarithms to make economic and financial data more symmetric before doing inference. Find the correlations and generate scatterplots for each pair of transformed variables. Interpret the results and then compare with your analysis of the original variables.
SOLVED:The logarithm transformation pulls in the long tail of a skewed distribution. It is common to use logarithms to make economic and financial data more symmetric before doing inference. Find the correlations and generate scatterplots for each pair of transformed variables. Interpret the results and then compare with your analysis of the original variables.
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