A log transformation might be appropriate to alleviate which problem(s)?
A)Heteroscedastic residuals
B)Multicollinearity
C)Autocorrelated residuals

Question

Quizplus · Accepted Answer

A log transformation is often used to address heteroscedastic residuals (unequal variability in the error terms) by reducing the effect of outliers and extreme values. It does not address multicollinearity or autocorrelation.

A Log Transformation Might Be Appropriate to Alleviate Which Problem(s)