7
AssignmentMultiple Choice

Transforming to Achieve Linearity

Question 7 • Statistics

The scatterplot shows the balance of a retirement account that grows exponentially.Which transformation would linearize this exponential data?

Answer
A
Time, Balance2
B
ln(Time), Balance
C
Time, ln(Balance)
D
ln(Time), ln(Balance)

Explanation

For exponential growth, balance can be modeled as Balance = a·b^Time. Taking the natural logarithm gives ln(Balance) = ln(a) + Time·ln(b), which is linear in Time. So plotting Time against ln(Balance)—choice C—linearizes the data.

AI-written and checked against the verified answer.

Previous
Next