How to write the multiple regression model when both the dependent variable and independent variabls

Cindy Noble

Cindy Noble

Answered question

2022-10-05

How to write an equation where both independent variables and dependent variables are log transformed in a multiple regression?
How to write the multiple regression model when both the dependent variable and independent variables are log-transformed?
I know that without any log transformation the linear regression model would be written as enter image description here
y = β 0 + β 1 ( x 1 ) + β 2 ( x 2 ) +
But now I have transformed both my dependent variables and independent variable with log. So is correct to write as enter image description here log ( y ) = β 0 + β 1 log ( x 1 ) + β 2 log ( x 2 ) +
Or since I am transforming both sides of question so can I write it as enter image description here
ln ( y ) = β 0 + β 1 ( x 1 ) + β 2 ( x 2 ) +

Answer & Explanation

Reagan Tanner

Reagan Tanner

Beginner2022-10-06Added 8 answers

I am afraid that all your transformed forms are false.
Starting from
y = β 0 + β 1 ( x 1 ) + β 2 ( x 2 ) + . . .
you can write :
ln ( y ) = ln ( β 0 + β 1 ( x 1 ) + β 2 ( x 2 ) + . . . )
This is not equivalent to β 0 + β 1 ( ln ( x 1 ) ) + β 2 ( ln ( x 2 ) ) + . . .
Also you can change of variables :
X 1 = e x 1 ; X 2 = e x 2 , . . .
y = β 0 + β 1 ln ( X 1 ) + β 2 ln ( X 2 ) + . . .
And with the change of :
Y = e y
ln ( Y ) = β 0 + β 1 ln ( X 1 ) + β 2 ln ( X 2 ) + . . .
Sorry if I misunderstood your question.

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