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Best Fit Lines & Curves by Alan R. Jones

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7 Least Squares Nonlinear Curve Fitting without the logs

What if we have what looks from the historical data to be a good nonlinear relationship between the variable we are trying to estimate and one or more drivers, but the relationship doesn’t fit well into one or more of our transformable functions? Do we:

  1. Throw in the proverbial towel, and make a ‘No bid’ recommendation because it’s too difficult and we don’t want to make a mistake?
  2. Think ‘What the heck; it’s close enough!’ and proceed with an assumption of a Generalised form of the nearest transformable function, estimate the missing constant, or just put up with the potential error?
  3. Shrug our shoulders, and say ‘Oh well! We can’t win the all!’, and go off for a coffee (other beverages are ...

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