Financial

Log-linear least-squares method

Log-linear least-squares method

A statistical technique for fitting a curve to a set of data points. One of the variables is transformed by taking its logarithm, and then a straight line is fitted to the transformed set of data points.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Log-Linear Least-Squares Method

In statistical analysis, a method of determining the relationship between dependent variables and independent variables calculated by taking the logarithm of all variables. One takes the logarithm because the calculation gives the same percentage changes to all variables equal weight. One then applies least-squares regression to the variables and plots them on a line.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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