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2 HAMS Technologies There is a very special property of all linear regression model that if the summation of all the independent variable is constant then dependent variable grow fastest only if Ratio of independent variable is equal to ratio of exponential respective model coefficient. or we can Ratio of model is same as ration of logarithmic respective independent variable value

3 HAMS Technologies Given a regression model Mathematically.. Then y grow faster only if also given, or say

4 HAMS Technologies Given Regression model is Lets prove this… now consider Then original regress model will be now Normalize this equation w.r.t M

5 HAMS Technologies 1. This factor will remain constant for given problem 2. So the growth of R will be directly proportional to this factor, For further derivation consider the number of independent drivers are two, n=2. We can use same approach for large n

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7 So, Ratio of model is same as ratio of logarithmic respective independent variable value or Ratio of independent variable is equal to ratio of exponential respective model coefficient. hence proved..

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