You suspect that the pattern relating sales (y) to levels of advertising (x) is

Question

You suspect that the pattern relating sales (y) to levels of advertising (x) is not linear (perhaps a log transformation is needed to represent diminishing marginal returns). Explain how you can still use the simple regression model (SRM) as a framework for modeling with variation in the data.

Choose the correct answer below.

A. There will have to be at least 100 sample values in order to use the SRM.

B. A transformation of x and y (or both) can be found so that the association between the transformed variables is linear.

C. You cannot use the SRM on the data.

Explanation / Answer

The correct option is B

Explanation:

A transformation of x and y (or both) can be found so that the association between the transformed variables is linear.

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