Given the data shown here for profits in 1,000s and tons sold:

A. Compute the linear model and the log-linear model. What happens to Y as X changes by one ton according to both models?

B. According to the linear model, what is Y if X = 7.07? What does the semi-log model predict if X = 7.07? How do these values compare to the actual value of X when X = 7.07 (the first observation)?

C. Find the values of Y for both models if X = 8.07—a change of one unit.

D. What is the change in Y when X changes from 7.08 to 8.07?

E. How do these changes compare with the changes predicted by both models?

Transcribed Image Text:

Profits (Y) Tons (X) In Profits