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Which of the following would provide evidence that a power law model of the form y=axbwhere b0andb1, describes the relationship between a response variable yand an explanatory variable x.

(a) A scatterplot of yversus xlooks approximately linear.

(b) A scatterplot of ln yversus xlooks approximately linear.

(c) A scatterplot of yversus ln xlooks approximately linear.

(d) A scatterplot of ln yversus ln xlooks approximately linear.

(e) None of these.

Short Answer

Expert verified

A scatterplot of in lnyversus in lnxlooks approximately linear. Therefore the correct option is d.

Step by step solution

01

Given Information

A power law model of the form y=axbwhere b0and b1describes the relationship between a response variableyand an explanatory variablex.

02

Explanation

The scatterplot of a power model has become linear if we convert both variables to its logarithms. In the options (a) and (b) both variables are without logarithms and in the option (c) only one variable in logarithms.

Thus, the correct option is (d).

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