10-08-19 Transformation of variables for likelihood calculation

A new procedure with a Box-Cox transformation (Box&Cox, 1964) have been introduced when calculation log likelihood from validation data. A Technical module switch /Box-Cox transformation/ is used to turn the transformation on. The Box-Cox transformation is using two parameters (/Box Cox power/ and /Box Cox offset/) that are part of the parameter table “Scaling of Observed Variables” to filter the observed and simulated data:

Newvalue=((value+offset)**power-1)/power when power>0.00001

and

Newvalue=log(value+offset) when power<0.00001.

The likelihood of the untransformed values are equal to the likelihood based on the transformed values multiplied with the derivative of the transformation. Thus, the log likelihood is calculated as the sum of the loglikelihood of the transformed values plus the log of the transform derivative calculated for the measured value:

The values are calculated as= ((value+offset)**(power-1)))

This procedure was used by Yang et al (2007) for a hydrological application.

References:
Box, G. E. P. and Cox, D. R. (1964): An Analysis of Transformations. Journal of the Royal Statistical Society. Series B (Methodological), Vol. 26, No. 2 (1964), pp. 211-252.
Yang, J., Reichert, P., Abbaspour, K. C., and Yang, H. Hydrological modelling of the Chaohe
Basin in China: Statistical model formulation and Bayesian inference. Journal of
Hydrology 340, 167– 182, 2007.