
Chapter 15
598
Taking sales as the dependent variable and advertisment as the independent variables, t a regres-
sion line using log transformation of variables.
Solution: Table 15.11 exhibits log transformed values of sales and advertisement in terms of log
sales and log advertisement.
TABLE 15.11
Log transformed values of sales turnover and advertisement expenditure
in terms of log sales and log advertisement.
Months Sales Advertisement Log sales Log advertisement
1 1.4 2 0.33647 0.69315
2 1.2 2 0.18232 0.69315
3 0.9 2 –0.10536 0.69315
4 2.4 3 0.87547 1.09861
5 2.8 3 1.02962 1.09861
6 3.0 3 1.09861 1.09861
7 5.7 4 1.74047 1.38629
8 5.9 4 1.77495 ...