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Logarithmic transformation

 

Logarithmic transformations are commonly used in financial data to transform exponential growth into linear growth

For example:

A

1

=[1.26,1.58,2,2.51,3.16,3.98,5.01,6.31,7.94,10]

2

=A1.(lg(~))

A1 The data in A1 grows exponentially

..

A2 After logarithmic transformation, it increases linearly

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