Muddy Points

Lesson 8: SLR Model Diagnostics

Modified

February 4, 2025

Muddy Points from Winter 2025

1. using gladder()

gladder will show you what the transformation of a single variable looks like. We can use it as a visual assessment to determine which transformations we might want to try for a variable.

I showed it for both FLR and LE. Note that I did it for each variable separately! Then I decided LE and FLR, separately, might benefit from a squared or cubed transformation.

2. When going “up” or “down” the ladder, do we include all the items on the way (I.e., add squared and cubed if we want to get to cubed) or just the one we want in our model?

I suggest trying all the ones on the way. This is why I like gladder(). Instead of making a choice on going “up” or “down,” we can look at all the plots and see how each transformation will help us make the variable more normally distributed.

3. Transformations - in ‘real life’, would you try transforming X alone, Y alone, and X and Y together? Or was that just an example for today’s lesson?

Yes, that is a good order of things! We will talk more about the reasoning for X first when we get to multiple linear regression. The main point is that transforming our covariates (X’s) will not impact the linear relationship between other X’s and the outcome (Y). If we transform Y first, then we need to make sure all X’s have maintained their linear relationship with the transformed Y.

5. Are outliers and high leverage points synonymous with one another? I get the general gist that they are values far away from X_bar, but what is the difference between the two?

They are NOT synonymous. Only high leverage points are observations far from \(\overline{X}\). Outliers are observations that do not follow the general trend of the other observations. This means an outlier can be right at \(\overline{X}\), but have a Y-value falls very far from the \(\widehat{Y}\) line.