Variable Transformation in Linear Regression

  1. How do we use linear regression model for predicting the future response variable.

  2. When should I transform the X variable in the model and also when should I transform the Y variable in the model. What type of transformation can I do so that my parameters are linear.

  3. If I do any transformation randomly on X variable how does the software R or any other satatistical software recognise these. I can transform data and provide it to any one without letting them know. What should I consider before transforming any variable.

  4. Which considering the model to be BLUE what consideration should I make before transforming and How the transformation thing works.

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