Question: Consider the three models a. y = 0 + 1 (1/ x ) + b. 1/ y = 0 + 1 x +
Consider the three models
a. y = β0 + β1 (1/ x ) + ε
b. 1/ y = β0 + β1 x + ε
c. y = x/ ( β0 − β1 x ) + ε
All of these models can be linearized by reciprocal transformations. Sketch the behavior of y as a function of x . What observed characteristics in the scatter diagram would lead you to choose one of these models?
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