Suppose you suspect an exponential relationship between independent variable x and dependent variable y. (An exponential relationship

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Suppose you suspect an exponential relationship between independent variable x and dependent variable y. (An exponential relationship has the general form y = mqx, where m and q are constants.) You want to use simple linear regression to estimate that relationship. You have the following data and the accompanying scatter diagram to work with.

Make the appropriate transformation to linearize the data and show the scatter diagram. Then 

a. Find the least squares line that best describes the transformed data.

b. Report the appropriate m and q values for the associated exponential function 

c. Use the exponential function that you’ve identified to compute the expected value of y for x = 1.5. For x = 5.
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Understanding Business Statistics

ISBN: 978-1118145258

1st edition

Authors: Stacey Jones, Tim Bergquist, Ned Freed

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