A new graphical method for assessing parametric transformations of the resp
onse in linear regression is given. We simply regress the response variable
Y on the predictors, find the fitted values, and then dynamically plot the
transformed response Y-(lambda) against those fitted values by varying the
transformation parameter A until the plot is linear. The method can be use
d also to assess the success of numerical response transformation methods a
nd to discover influential observations. Modifications using robust estimat
ors can be used as well.