Notes on the use of data transformations

Data transformations are commonly used tools that can serve many functions in quantitative analysis of data. The goal of this paper is to focus on the use of three data transformations most commonly discussed in statistics texts (square root, log, and inverse) for improving the normality of variables. While these are important options for analysts, they do fundamentally transform the nature of the variable, making the interpretation of the results somewhat more complex. Further, few (if any) statistical texts discuss the tremendous influence a distribution's minimum value has on the efficacy of a transformation. The goal of this paper is to promote thoughtful and informed use of data transformations. Accessed…