Abstract

In general, the application conditions of linear regression models could be met after the natural logarithmic transformation of data. From the practical perspective, this paper introduced the linear regression models with natural logarithmic transformation of independent variable, dependent variable, and both independent and dependent variables in detail. The paper illustrated why the equation and coefficients could not be directly explained after the natural logarithmic transformation of data. The percentage changes of X and/or Y were applied to elaborate the principle and method for the explanation of the equation and coefficients. Three examples were used to fit simple linear models with natural logarithmic transformation of independent, dependent, and both independent and dependent variables and the results of theses models were explained in detail.

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