Question

Can you use non-linear variables in a linear regression model?

Answer 1

We can use linear regression model in non-linear relations in cases, where they can be expressed in linear form.

Explanation:

Let us assume a function such as `y=kx^a`, where `k` and `a` are two constants.

By taking logs of both sides, we get `logy=logk+alogx`, which can be written as `bary=bark+abarx`, a linear relation between `bary=logy` and `barx=logx`.

As the relation is linear, we can now use linear regression model. Hence, we can do this in cases where the non-linear elation can be expressed in linear form.