Prediction and Power Transformations When the Choice of Power is Restricted to a Finite Set

We study the family of power transformations proposed by Box and Cox (1964) when the choice of the power parameter is restricted to a finite set R. The behavior of the Box-Cox procedure is as anticipated in two extreme cases: When the true parameter is an element of R and when is far from R. We study the case in which 0 is close to R, finding that the resulting methods can be very different from unrestricted maximum likelihood and that inferences may depend on the design, the values of the regression parameters, and the distance of to R. 1982 Taylor & Francis Group, LLC.

Prediction and Power Transformations When the Choice of Power is Restricted to a Finite Set Academic Article