Box Cox Transformation In R. 1964 An analysis of transformations with discussion. For applying box cox transformation on vector use forecast package in r.
After fitting your regression model containing untransformed variables with the R function lm you can use the function boxCox from the car package to estimate lambda ie. Boxcox lm distspeeddatacarslambdaseq 01by1. Computes and optionally plots profile log-likelihoods for the parameter of the Box-Cox power transformation.
Here is a nice summary of the original work and all the work thats been done since.
Box and Cox 1964 suggested a family of transformations designed to reduce nonnormality of the errors in a linear model. Boxcox lm distspeeddatacarslambdaseq 01by1. Journal of the Royal Statistical Society B 26 211252. Nov 13 2012 We can then use profile-likelihood techniques see here to derive the optimal transformation.
