The first way to try to fix this is to apply logarithm to the observations on the dependent variable. This is going to make the dependent variable with high degree of kurtosis normal.

Note that sometimes, the resulting values of the variable will be negative. Do not worry about this, as it is not a problem. It does not affect the regression coefficients, it only affects the regression intercept, which after transformation, will be of no interest.

7 0

3 years ago

There are 12 red marbles and 8 green marbles in a bag. What is the probability of selecting a red

madam [21]

Answer:

The probability of selecting a red marble, not replacing it, and then selecting a green marble from the bag is 24/95

Step-by-step explanation:

Number of red marbles = 12

Number of green marbles = 8

Total number of marbles = 12+8 = 20

Probability of selecting red marble = $\frac{12}{20}$

Since it is the case of no replacement

Remaining marbles = 20-1 = 19

Number of red marbles = 12-1=11

Number of green marbles = 8

Probability of selecting green marble = $\frac{8}{19}$

So, the probability of selecting a red marble, not replacing it, and then selecting a green marble from the bag = $\frac{12}{20} \times \frac{8}{19}=\frac{24}{95}$