Transformational grammar analyzes language based on the generative and subconscious rules that native speakers use. It seeks to understand the linguistic intuition of native speakers by observing data, generalizing rules, developing hypotheses, and testing sentences on speakers. Transformational grammar models language through a phrase structure, lexical component, deep structure, transformations, surface structure, and morphophonemic rules to generate sentences. It describes how language is produced rather than prescribing rules.