The Journal of Accounting and Management, Vol 3, No 2 (2013)

The Behavior of a Polynomial Regression Under a Variables Transformation

Catalin Angelo IOAN

Abstract


Thepaper treats a problem of a great importance in the author's view relatively tothe behavior of polynomial regressions to linear transformations of thevariables. If, from a theoretical point of view, the estimation of a processusing regressions give the same results, regardless of the size of theexogenous variable, from a practical standpoint the results are not quite so.

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