Quantitative Analysis for Management, 13/e

4.10 Nonlinear Regression

The regression models we have seen are linear models. However, at times there exist nonlinear relationships between variables. Some simple variable transformations can be used to create an apparently linear model from a nonlinear relationship. This allows us to use Excel and other linear regression programs to perform the calculations. We will demonstrate this in the following example.

Transformations may be used to turn a nonlinear model into a linear model.

On every new automobile sold in the United States, the fuel efficiency (as measured by miles per gallon [MPG] of gasoline) of the automobile is prominently displayed on the window sticker. The MPG is related to several factors, one of which is the weight of the ...