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Transforming Data

Definition

Transforming data involves applying mathematical operations to change its original form. This process helps make patterns more visible, relationships more linear, or distributions more symmetric.

Analogy

Think of transforming data like using filters on your photos. Just as filters can enhance colors or adjust brightness, transforming data can enhance patterns or adjust distributions to make them easier to analyze.

Related terms

Logarithmic Transformation: A logarithmic transformation involves taking the logarithm (base 10 or natural) of each data point. It compresses large values while expanding small ones, useful for dealing with exponential growth or highly skewed distributions.

Square Root Transformation: A square root transformation involves taking the square root of each data point. It reduces skewness and emphasizes smaller values without distorting relative differences.

Box-Cox Transformation: The Box-Cox transformation is a family of power transformations that includes both logarithmic and square root transformations as special cases. It allows for finding an optimal transformation based on the data's characteristics.