Definitions

# Smearing retransformation

The Smearing retransformation is used in regression analysis, after estimating the logarithm of a variable. Estimating the logarithm of a variable instead of the variable itself is a common technique to more closely approximate normality. In order to retransform the variable back to level from log, the Smearing retransformation is used.

If the log-transformed variable y is estimated as:

$log\left(y\right) = f\left(X\right) + er$

then, the level variable is given by:

$y = exp\left(f\left(X\right)\right)exp\left(er\right).$

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