Assets again. Here are the same data you saw in Exercise 37 after re-expressions as the square root of assets and the logarithm of assets:

a) Which re-expression do you prefer? Why?

b) In the square root re-expression, what does the value 50 actually indicate about the company’s assets?

c) In the logarithm re-expression, what does the value 3 actually indicate about the company’s assets?

20 20 15 # of Companies 10 10 5 10 10 8 # of Companies 6 4 2 0 75 Assets 150 225 2.25 3.00 3.75 4.50 Log (Assets)