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predictions using log-transformed response variables

To: <s-news@lists.biostat.wustl.edu>
Subject: predictions using log-transformed response variables
From: "Schwarz,Paul" <PSchwarz@gcrinsight.com>
Date: Sun, 10 Sep 2006 00:25:02 -0700
Thread-index: AcbUqjqsBQZVWRAkT66fUVZpgB7j7Q==
Thread-topic: predictions using log-transformed response variables
S-News readers,
 
I know that this is more of a statistical issue than an S-PLUS issue,
but I was hoping that someone would kindly summarize for me the issues
related to making predictions e.g, using predict(), involving models
with a log-transformed reponse variable. For example, if a linear model
is fitted using lm(log(y) ~ x1 + x2, data= ...), what is the proper way
to make predictions using the model? I've heard about a so-called
"smear" factor, but I'm not clear about what it is, or when to apply it,
or how to calculate it. For example, are there standard S-PLUS functions
for calculating a smear factor, or is there an option with the predict
functions? If someone would clarify this issue for me, I would be most
grateful.

Thank you for your time and consideration.

-Paul Schwarz


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