What is LOG-LINEAR LEAST-SQUARES METHOD?

Statistical estimation technique for straight-line, linear relationships between two or more variables. A dependent variable is influenced by one or more independent variables in this case. The data values, converted to their logarithms to insure equal percentage changes have equal weight, have a least-squares regression applied. Typical uses of this method are for explaining why the differences in security returns occur due to differences in capitalization, for example. Also known as logarithmic transformation method.

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