Heteroscedasticity & Transformations- Video of “transforming” data

Heteroscedasticity & transformations

Heteroscedasticity & Transformations

Financial data often has problems with heteroscedasticity also spelled Heteroskedasticity (funnel shaped). Performing transformations is necessary however I often have a hard time explaining what the transformation is actually doing. This video helps show what is happening during a log transformation.

After watching the data literally “transform” it was much easier to grasp exactly what was happening and how it would help.  Just remember you’ll have to transform it back if you wish to interpret the values.  While the below video was created using SYSTAT, I transform data so often I have some killer SPSS macros which transform data effortlessly.

You want your data to be normally distributed around the line which is “homosecasticity“.

 

If you’re interested in reading more, SAGE has a specific book on Heteroscedasticity & transformations

Automate Excel graphs with AutoHotKey and SPSS; Automating pretty charts!

Automate Excel graphsA white stress ball with the green AutoHotkey logo being held in a hand, with a laptop keyboard blurred in the backgroundAfter 20 years of doing multivariate statistics, doing analytics is very quick and easy for me.  Putting together the report which clients will think is “pretty” and convey the results is what really takes the time!  I have a ton of macros in SPSS which greatly simplify the front-end however I’ve always preferred Excel graphs to SPSS (because they don’t look like they were drawn with crayons).

Automate Excel graphs

In the below video I demonstrate how you how you can use AutoHotKey to easily automate Excel graphs that you’ll be proud to put your name on!

Two women smiling and looking at a computer screen together in a bright office, one pointing at the monitor.

Using Hotstrings to help utilized custom SPSS scripts

SPSS ScriptsUsing Hotstrings from AutoHotKey help write your code is a great, easy, way to greatly improve your speed!  This example demonstrates me using hotstrings for writing most of which are actually custom SPSS scripts) which typically affect the look of output.  The newer versions of AutoHotKey now utilized Python for their scripting.  Most of mine were written in SAX Basic.  I’d post the code but it is unlikely they will work for you.

Scripts are easy to use and adaptable to make output much more meaningful and in a format ready to be used. AutoHotKey helps write syntax to utilize the scripts.

SPSS Scripts

https://www.youtube.com/watch?v=PF_s10kuppQ

 

Sample Scripts Library | Raynald’s SPSS Tools

Visual Basic-like language, embedded into SPSS for Windows. Use scripts samples to solve tasks related to interface and output manipulation.

Free SPSS Scripts

Use this script to rename some or all of the variables in your spss dataset. This script uses search and replace for effective renaming. Rename all your variables  …