Alternating conditional expectations: Difference between revisions

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==Introduction==
In [[statistics]], nonlinear transformation of variables is commonly used in practice in regression problems. [[Alternating conditional expectations]] (ACE) is one of the methods to find those transformations that produce the best fitting [[additive model]]. Knowledge of such transformations aids in the interpretation and understanding of the relationship between the response and predictors.
 
ACE transform the response variable <math>Y</math> and its predictor variables, <math>X_i</math> to minimize the [[Fraction of variance unexplained|fraction of variance not explained]]. The transformation is nonlinear and is obtained from data in an iterative way.