Re-Express Data to Make Them Appropriate for Use with a Linear

question 22

Multiple Choice

Re-express data to make them appropriate for use with a linear model
-Data on labor productivity and unit labor costs were obtained for the retail industry
From 1987 through 2006 (Bureau of Labor Statistics) . A regression was estimated to
Describe the linear relationship between the two variables. Below is the plot of residuals
Versus predicted values. Which of the following re-expression of the data would be
Appropriate?

• A) Square the data values.
• B) Cube the data values.
• C) Use a logarithmic transformation.
• D) Use a geometric transformation.
• E) The data should not be transformed.

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Definitions:

Significance Level

A measure in statistics that determines the threshold of accepting or rejecting the null hypothesis in hypothesis testing.

Travel Time

The duration taken to move or transport from one location to another.

Commutes

The process of traveling between one’s home and place of work or study.

Kruskal-Wallis Test

A non-parametric statistical test used to determine if there are statistically significant differences between three or more groups of an independent variable on a continuous or ordinal dependent variable.