# Linear regression

#### xwantedx

##### New Member

A golf club manufacturer is trying to determine how the price of a set of clubs
affects the demand for clubs. Below contains the price of a set of clubs and the monthly sales.
a) Assume the only factor influencing monthly sales is price. Fit the following
three curves to these data: linear (Y=a+bX), exponential (Y=ab^X), and multiplicative
(Y=aX^b). Which equation fits the data best based on R^2? (You should also comment on the residual plot of each model.)
Price Demand
$400 20,000$420 19,000
$440 17,000$460 16,000
$500 14,000$380 22,000
$290 31,000$340 26,000
$220 41,000$700 6,000

#### BGM

##### TS Contributor
Which part do you think difficult? Take log?