Which one of the following can not be solved using transformation? A. Non Constant Variance B....

Question

Question

Which one of the following can not be solved using transformation?

A. Non Constant Variance

B. Non-Linearity

C. Non-Normality

D. Multicolinearity

Answer 1

Answer #1

We can solve heteroscedasticity through transformation which is non constant variance.

Also multicollinearity exist when there is linear relationship between regressors which can be solved by transformation.

Non linearity can also be solved by transformation by applying some log transformation when model is non linear in parameters or regressors

But non normality can not be solved by transformation.

Answer 2

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