The use of transformation can usually simplify the analysis of data, especially when the original observations deviate from the underlying assumption of linear model. Box-Cox transformation receives much more attention than others. In this dissertation,. we will review the theory about the estimation, hypotheses test on transformation parameter and about the sensitivity of the linear model parameters in Box-Cox transformation. Monte Carlo simulation is used to study the performance of the transformations. We also display whether Box-Cox transformation make the transformed observations satisfy the assumption of linear model actually.