.- Transformations: an introduction .- ^Transformation^ is the replacement of a variable by a function of that variable: for example, replacing a variable x by the square root of x or the logarithm of x. It is very common in data analysis. This help item covers the following topics. You can read in sequence or go directly to each section. Reasons for using transformations help @trreason@ Review of most common transformations help @trreview@ Transformations for proportions and percents help @trpropor@ Psychological comments -- for the puzzled help @trpsych@ How to do transformations in Stata help @trstata@ Reasons for using transformations --------------------------------- There are many reasons for transformation. The list here is not comprehensive. 1. Convenience 2. Reducing skewness 3. Equal spreads 4. Linear relationships 5. Additive relationships If you are looking at just one variable, 1, 2 and 3 are relevant, while if you are looking at two or more variables, 4 and 5 are more important. However, transformations that achieve 4 and 5 very often achieve 2 and 3. 1. ^Convenience^ A transformed scale may be as natural as the original scale and more convenient for a specific purpose (e.g. percentages rather than original data, sines rather than degrees). One important example is ^standardisation^, whereby values are adjusted for differing level and spread. In general value - level standardised value = -------------. spread Standardised values have level 0 and spread 1 and have no units: hence standardisation is useful for comparing variables expressed in different units. Most commonly a ^standard score^ is calculated as x - mean of x z = -------------. sd of x Standardisation makes no difference to the shape of a distribution. 2. ^Reducing skewness^ A transformation may be used to reduce skewness. A distribution that is symmetric or nearly so is often easier to handle and interpret than a skewed distribution. To reduce right skewness, take roots or logarithms or reciprocals (roots are weakest). This is the commonest problem in practice. To reduce left skewness, take squares or cubes or higher powers. 3. ^Equal spreads^ A transformation may be used to produce approximately equal spreads, despite marked variations in level, which again makes data easier to handle and interpret. Each data set or subset having about the same spread or variability is a condition called ^homoscedasticity^: its opposite is called ^heteroscedasticity^. (The spelling ^-sked-^ rather than ^-sced-^ is also used.) 4. ^Linear relationships^ When looking at relationships between variables, it is often far easier to think about patterns that are approximately linear than about patterns that are highly curved. This is vitally important when using linear regression, which amounts to fitting such patterns to data. (In Stata, @regress@ is the basic command for regression.) For example, a plot of logarithms of a series of values against time has the property that periods with ^constant rates of change^ (growth or decline) plot as straight lines. 5. ^Additive relationships^ Relationships are often easier to analyse when additive rather than (say) multiplicative. So y = a + bx in which two terms a and bx are added is easier to deal with than b y = ax b in which two terms a and x are multiplied. ^Additivity^ is a vital issue in ^analysis of variance^ (in Stata, @anova@, @oneway@, etc.). In practice, a transformation often works, serendipitously, to do several of these at once, particularly to reduce skewness, to produce nearly equal spreads and to produce a nearly linear or additive relationship. Review of most common transformations ------------------------------------- The most useful transformations in introductory data analysis are the ^reciprocal^ x to 1/x and the ^negative reciprocal^ x to -1/x. This is a very strong transformation with a drastic effect on distribution shape. It can not be applied to zero values. Although it can be applied to negative values, it is not useful unless all values are positive. The reciprocal of a ratio may often be interpreted as easily as the ratio itself: e.g. population density (people per unit area) becomes area per person persons per doctor becomes doctors per person rates of erosion become time to erode a unit depth. (In practice, we might want to multiply or divide the results of taking the reciprocal by some constant, such as 1000 or 10000, to get numbers that are easy to manage, but that itself has no effect on skewness or linearity.) The reciprocal reverses order among values of the same sign: largest becomes smallest, etc. The negative reciprocal preserves order among values of the same sign. the ^logarithm^ x to log base 10 of x OR x to log base e of x (ln x) OR x to log base 2 of x. This is a strong transformation with a major effect on distribution shape. It is commonly used for reducing right skewness and is often appropriate for measured variables. It can not be applied to zero or negative values. One unit on a logarithmic scale means a multiplication by the base of logarithms being used. Exponential growth or decline bx y = ae is made linear by ln y = ln a + bx so that the response variable y should be logged. (Here e is a special number, approximately 2.71828, that is the base of natural logarithms.) An aside on this ^exponential growth or decline^ equation: put x = 0, and 0 y = ae = a, so a is the amount or count when x = 0. If a and b > 0, then y grows at a faster and faster rate (e.g. compound interest or unchecked population growth), whereas if a > 0 and b < 0, y declines at a slower and slower rate (e.g. radioactive decay). Power functions b y = ax are made linear by log y = log a + b log x so that both variables y and x should be logged. An aside on such ^power functions^: put x = 0, and for b > 0, b y = ax = 0, so the power function for positive b goes through the origin, which often makes physical or biological or economic sense. Think: does zero for x imply zero for y? This kind of power function is a shape that fits many data sets rather well. Consider ratios y = p / q where p and q are both positive in practice. Examples are males / females dependants / workers downstream length / downvalley length then y is somewhere between 0 and infinity, or in the last case, between 1 and infinity. If p = q, then y = 1. Such definitions often lead to skewed data, because there is a definite lower limit and no definite upper limit. The logarithm, however, namely log y = log p / q = log p - log q, is somewhere between -infinity and infinity and p = q means that log y = 0. Hence the logarithm of such a ratio is likely to be more symmetrically distributed. the ^cube root^ x to x^^(1/3). This is a fairly strong transformation with a substantial effect on distribution shape: it is weaker than the logarithm. It is also used for reducing right skewness, and has the advantage that it can be applied to zero values. Note that the cube root of a volume has the units of a length. It is commonly applied to rainfall data. the ^square root^ x to x^^(1/2) = sqrt(x). This is a transformation with a moderate effect on distribution shape: it is weaker than the logarithm and the cube root. It is also used for reducing right skewness, and also has the advantage that it can be applied to zero values. Note that the square root of an area has the units of a length. It is commonly applied to counted data, especially if the values are mostly rather small. the ^square^ x to x^^2. This transformation has a moderate effect on distribution shape and it could be used to reduce left skewness. In practice, the main reason for using it is to fit a response by a quadratic function y = a + b x + c x^^2. Quadratics have a turning point, either a maximum or a minimum, although the turning point in a function fitted to data might be far beyond the limits of the observations. The distance of a body from an origin is a quadratic if that body is moving under constant acceleration, which gives a very clear physical justification for using a quadratic. Otherwise quadratics are typically used solely because they can mimic a relationship within the data region. Outside that region they may behave very poorly, because they take on arbitarily large values for extreme values of x, and unless the intercept a is constrained to be 0, they may behave unrealistically close to the origin. Squaring usually makes sense only if the variable concerned is zero or positive, given that (-x)^^2 and x^^2 are identical. The main criterion in choosing a transformation is: what works with the data? As examples above indicate, it is important to consider as well two questions. - What makes physical (biological, economic, whatever) sense, for example in terms of limiting behaviour as values get very small or very large? This question often leads to the use of logarithms. - Can we keep dimensions and units simple and convenient? If possible, we prefer measurement scales that are easy to think about. The cube root of a volume and the square root of an area both have the dimensions of length, so far from complicating matters, such transformations may simplify them. Reciprocals usually have simple units, as mentioned earlier. Often, however, somewhat complicated units are a sacrifice that has to be made. Transformations for proportions and percents (more advanced) ------------------------------------------------------------ Data that are proportions (between 0 and 1) or percents (between 0 and 100) often benefit from special transformations. The most common is the ^logit^ (or logistic) transformation, which is logit p = log (p / (1 - p)) for proportions OR logit p = log (p / (100 - p)) for percents where p is a proportion or percent. This transformation treats very small and very large values symmetrically, pulling out the tails and pulling in the middle around 0.5 or 50%. The plot of p against logit p is thus a flattened S-shape. Strictly logit p cannot be determined for the extreme values of 0 and 1 (100%): if they occur in data, there needs to be some adjustment. One justification for this logit transformation might be sketched in terms of a diffusion process such as the spread of literacy. The push from zero to a few percent might take a fair time; once literacy starts spreading its increase becomes more rapid and then in turn slows; and finally the last few percent may be very slow in converting to literacy, as we are left with the isolated and the awkward, who are the slowest to pick up any new thing. The resulting curve is thus a flattened S-shape against time, which in turn is made more nearly linear by taking logits of literacy. More formally, the same idea might be justified by imagining that adoption (infection, whatever) is proportional to the number of contacts between those who do and those who do not, which will rise and then fall quadratically. More generally, there are many relationships in which predicted values cannot logically be less than 0 or more than 1 (100%). Using logits is one way of ensuring this: otherwise models may produce absurd predictions. The logit (looking only at the case of proportions) logit p = log (p / (1 - p)) can be rewritten logit p = log p - log (1 - p) and in this form can be seen as a member of a set of ^folded^ ^transformations^ transform of p = something done to p - something done to (1 - p). This way of writing it brings out the symmetrical way in which very high and very low values are treated. (If p is small, 1 - p is large, and vice versa.) The logit is occasionally called the ^folded log^. The simplest other such transformation is the ^folded root^ (that means square root) folded root of p = root of p - root of (1 - p) As with square roots and logarithms generally, the folded root has the advantage that it can be applied without adjustment to data values of 0 and 1 (100%). The folded root is a weaker transformation than the logit. In practice it is used far less frequently. Two other transformations for proportions and percents met in the older literature (and still used occasionally) are the ^angular^ and the ^probit^. The angular is arcsin(root of p): that is, the angle whose sine is the square root of p. In practice, it behaves very like 0.41 0.41 p - (1 - p) , which in turn is close to 0.5 0.5 p - (1 - p) , which is another way of writing the folded root. The probit is a transformation with a mathematical connection to the normal (Gaussian) distribution, which is not only very similar in behaviour to the logit, but also more awkward to work with. As a result, it is now rarely seen in any but more advanced applications, where it retains some advantages. Psychological comments -- for the puzzled ----------------------------------------- The main motive for transformation is greater ease of description. Although transformed scales may seem less natural, this is largely a psychological objection. Greater experience with transformation tends to reduce this feeling, simply because transformation so often works so well. In fact, many familiar measured scales are really transformed scales: decibels, pH and the Richter scale of earthquake magnitude are all logarithmic. Often it helps to transform results back again, using the reverse or ^inverse^ transformation: reciprocal also reciprocal t = 1 / x x = 1 / t logarithm base 10 10 to the power x t = log x t = 10 10 logarithm base e e to the power x t = log x = ln x t = e e logarithm base 2 2 to the power x t = log x t = 2 2 cube root cube 1/3 3 t = x x = t square root square 1/2 2 t = x x = t How to do transformations in Stata ---------------------------------- Basic first steps: - Draw a graph of the data to see how far patterns in data match the simplest ideal patterns. Try @graph@ or @dotplot@. - See what range the data cover. Transformations will have little effect if the range is small. - Think carefully about data sets including zero or negative values. Some transformations are not defined mathematically for some values (see above), and often they make little or no scientific sense. For example, I would never transform temperatures in degrees Celsius or Fahrenheit for these reasons (unless to Kelvin). Standard scores (mean 0 and sd 1) in a new variable are obtained by . ^egen stdpopi = std(popi)^ whereas the basic transformations can all be put in new variables by @generate@: . ^gen recener = 1/energy^ . ^gen logeener = ln(energy)^ . ^gen l10ener = log10(energy)^ . ^gen curtener = energy^^(1/3)^ . ^gen sqrtener = sqrt(energy)^ . ^gen sqener = energy^^2^ . ^gen logitp = log(p/(1-p))^ if p is a proportion . ^gen logitp = log(p/(100-p))^ if p is a percent . ^gen frootp = sqrt(p) - sqrt(1-p)^ if p is a proportion . ^gen frootp = sqrt(p) - sqrt(100-p)^ if p is a percent Note any messages about missing values carefully: unless you had missing values in the original variable, they indicate an attempt to apply a transformation when it is not defined. (Do you have zero or negative values, for example?) It is not always necessary to create a transformed variable before working with it. In particular, @graph@ allows the option ^log^ when producing a histogram and the options ^xlog^ and ^ylog^ when drawing a (twoway) scatter plot. The last is very useful because the graph is labelled using the original values, but it does not leave behind a log-transformed variable in memory. Author ------ This help file was put together by Nicholas J. Cox, University of Durham, U.K. n.j.cox@@durham.ac.uk (last revised 20 February 1999) Also see -------- On-line: @generate@, @egen@, @graph@