Exponential and geometric model, Mathematics

Exponential and Geometric Model

Exponential model

 y = abx

Take log of both sides

log y = log a + log bx

log y = log a + xlog b

Assume log y = Y and log a = A and log b = B

Hence we get Y = A + Bx. It is a linear regression model

Geometric model

 y = axb

By using the similar technique as above

log y = log a + b log x

Y = A + bX

Whereas Y = log y

A = log a

X = log x

By using linear regression technique or the method of least squares, it is possible to calculate the value of a and b.

Posted Date: 2/16/2013 7:26:33 AM | Location : United States

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