Which of the three transformation provides the most symmetric distribution? Try other powers beside the square root. Which power do you think is best for symmetrization? You may include plots with your work if you find it helpful to do that.
Next, you will estimate the Box–Cox transformation parameter by maximum likelihood. The model is that the data are N(μ, σ2)-distributed after being transformed by some λ. The unknown parameters are λ, μ, and σ. Run the following R code to plot the profile likelihood for λ on the grid seq(-2, 2, 1/10) (this is the default and can be changed). The command boxcox takes an R formula as input. The left-hand side of the formula is the variable to be transformed. The right-hand side is a linear model (see Chap. 9). In this application, the model has only an intercept, which is indicated by
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