Question: Download the EDSAL.csv file (https://www.dropbox.com/s/gdwpbkdw72oq4mm/EDSAL.csv) ) and upload to a dataframe in R . The three variables are Education, Experience and Salary. > EDSAL =
Download the EDSAL.csv file (https://www.dropbox.com/s/gdwpbkdw72oq4mm/EDSAL.csv)
) and upload to a dataframe in R . The three variables are Education, Experience and Salary.
> EDSAL = read.csv("EDSAL.csv", header = TRUE)
Run 4 linear regressions using the lm function in R. ( you have to use the natural log)
- Lin-Lin: Use Salary as the dependent variable and Experience as the independent variable.
- Lin-Log: Use Salary as the dependent variable and log(Experience) as the independent variable.
- Log-Lin: Use log(Salary) as the dependent variable and Experience as the independent variable.
- Log-Log: Use log(Salary) as the dependent variable and log(Experience) as the independent variable.
For which of following situations are we most likely to consider log transformation?
1)Heteroscedasticity (non-constant variance) is observed in original model
2)Dependent and independent variables have linear relationship
3)Dependent and independent variables follow normal distribution
4)High R-squared score is observed in original model
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