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log y 'axis' of histogram

On 31/08/10 03:37, Derek M Jones wrote:
Hadley is correct about the problem of where to end the bars when trying 
to draw a log-histogram: basically you have to decide to cut them off 
somewhere. He is also right that a log-histogram is perhaps not a great 
graphic to use. However, they are used and indeed there is one in the 
Fieller, Flenley, Olbricht paper (published in Applied Statistics, now 
JRSS C) for example. I haven't searched for others, but certainly when I 
wrote a log-histogram routine it wasn't because I thought of doing such 
a plot all on my own.

A number of authors, including Barndorff-Nielsen in at least some of his 
papers (I haven't gone back and checked all his older work) just plot 
the midpoints of the tops of the log-histogram. (That is an option in 
logHist). Another approach is to fit an empirical density to the data 
and plot the log-density. That matches the advice often seen in this 
forum that plotting empirical density functions is preferable to drawing 
histograms. My feeling is that either of these two approaches is 
probably preferable to using log-histograms for the reasons Hadley 
enunciated. When plotting data plus a fitted curve, the midpoints 
approach does have the advantage of distinguishing data and theoretical 
curve more clearly.

Overall the idea of a plot with a logged y-axis is definitely a good one 
and its use is endemic in literature concerned with heavy-tailed 
distributions, particularly finance. The advantage is the clarity 
offered regarding tail behaviour, where for example exponential tails in 
the density correspond to straight lines in the logged y-axis plot.

Hope this helps.

David Scott