1Wednesday, May 10, Section 4.5 Linearization

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1Wednesday, May 10, 20061 Section 4.5 Linearization Process of transforming curvilinear data to make it linear Allows for ease in determining trends and selecting the most appropriate model 4/24/2019 Mr M Kennedy

Model: Consumer Price Index Year Price 1967 100 1968 106 1969 113 1970 120 1971 127 1972 135 1973 143 1974 152 1975 162 1976 172 1977 182 Model: Consumer Price Index The CPI allows comparisons of the costs of goods and services across years. If the base year for $100 of goods and services is 1967, determine the cost of these goods in 2002. Plot the data and determine if it is linear or curvilinear. Let 1967 be year t = 0. 4/24/2019 Mr M Kennedy      

CPI Data Scatter Plot and Best Fit Line 4/24/2019 Mr M Kennedy

CPI Data is Curvilinear Is the CPI data modeled by a power function or an exponential function? Linearization of the data allows us to answer this question. 4/24/2019 Mr M Kennedy

Linearizing Exponential Data We use the inverse logarithmic function to linearize exponential data. Suppose our exponential model is 4/24/2019 Mr M Kennedy

Linearizing Exponential Data If the model is exponential, then transforming data (x, y) by taking the Semi-log (x, ln y) will linearize the data. Fit a line to the linearized data. Reverse the above procedure to find the exponential model. 4/24/2019 Mr M Kennedy

Year Price ln(Price) 1967 100 4.605 1968 106 4.663 1969 113 4.727 1970 120 4.787 1971 127 4.844 1972 135 4.905 1973 143 4.963 1974 152 5.024 1975 162 5.088 1976 172 5.147 1977 182 5.204 Linearizing CPI data Natural logarithm of the dependent variable Price results in a nearly constant rate of change of k = 0.06 Indicates the original data has an exponential model 4/24/2019 Mr M Kennedy

Linearization CPI Data: (t, ln p) data and Best Fit Line 4/24/2019 Mr M Kennedy

CPI Exponential Model Best Fit Line for Semi-log data (t, ln p) 4/24/2019 Mr M Kennedy

CPI Exponential Model Determine CPI in 2002 t = 2002 – 1967 so t = 35 4/24/2019 Mr M Kennedy

Model: Territory Weight Area 10 20 50.5 50 168 100 417 150 709 A wild animal maintains a territory which they defend from animals of the same species. How is the weight of the animal related to its territorial area? Not linear, test to see if power function model. 4/24/2019 Mr M Kennedy

Linearizing Power Data We use the inverse logarithmic function to linearize power data. Suppose our power model is 4/24/2019 Mr M Kennedy

Linearizing Power Data If the model is power function, then transforming data (x, y) by taking the Log-log (ln x, ln y) will linearize the data. Fit a line to the linearized data. Reverse the above procedure to find the power model. 4/24/2019 Mr M Kennedy

Linearizing Territory data Natural logarithm of both variables results in a linear trend Indicates the original data has a power model Weight Area Ln(Weight) Ln(Area) 10 20 2.303 2.996 50.5 3.923 50 168 3.912 5.124 100 417 4.605 6.033 150 709 5.010 6.564 4/24/2019 Mr M Kennedy

Territory data Log-log Plot and Line of Best Fit 4/24/2019 Mr M Kennedy

Territory Power Model Best Fit Line for Log-log data (ln w, ln t) 4/24/2019 Mr M Kennedy

Territory Power Model Determine when the territorial area is 800 acres. 4/24/2019 Mr M Kennedy

Graphical Solution: y = w1.32 - 824.74 4/24/2019 Mr M Kennedy

Classroom Participation Find the model for data using linearization 4/24/2019 Mr M Kennedy

Classroom Participation Find the model for data using linearization Use linearization to determine a model for the original data? Is it a power function or an exponential function? 4/24/2019 Mr M Kennedy