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Friday, February 24, 2006

Comments

Barton Paul Levenson

How do you get the coefficients and intercept for the new relation in terms of the old variables?

Let me explain. Suppose you have a simple linear regression between Y and X:

Y = b0 + b1 X

You then calculate rho^ for the residuals, transform the variables, regress, find rho^ again, etc., until you have:

Y* = b*0 + b1* X*

How do you find b0 and b1 valuables so that the equation can be expressed in terms of the original Y and X?

Barton Paul Levenson

"Values," not "valuables." It's early. I'm not really awake yet.

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