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October 4, 2022

Latest Article: The Box Plot: A Comprehensive Overview

Box Plot - What is a Box Plot
Last Update: The Box Plot: A Comprehensive Overview
Lean Articles

October 4, 2022 Articles

Lean Articles

October 4, 2022 Articles

box cox transformation

The Box-Cox Transformation: What It Is and How to Use It

The Box Cox Transformation is a popular method of transforming non-normal dependent variables into a normal shape. This technique helps to stabilize variance and can improve the accuracy of any subsequent statistical tests or models. The transformation is named after statisticians George Box and David Cox who developed the technique in the 1960s. It involves taking the natural logarithm of a variable and then raising it to some power (lambda) which is determined by maximum likelihood estimation. The lambda value will depend on how skewed the data is, meaning that a different lambda will be used for different data sets. This transformation can be used in regression, ANOVA, and many other applications where there is a need to transform non-normal data into normal form.

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