An example of a way to rescale a variable to create a linear relationship is:
A) dividing all the values of the dependent variable by 5.
B) computing the log of all values of the dependent and independent variable.
C) adding 50 to all of the values of the dependent and independent variables.
D) adding the values of the dependent and independent variables to create a new dependent variable.

Question

Quizplus · Accepted Answer

Taking the log of the values can rescale the variable and create a linear relationship. This is often used when there is a wide range of values in the variable and taking the log can make the relationship more interpretable. Dividing all values by a constant (A) or adding a constant to all values (C) would simply shift the values, but not necessarily create a linear relationship. Adding the values of the variables together (D) does not make sense in terms of rescaling or creating a linear relationship.

An Example of a Way to Rescale a Variable to Create