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Why are the cars values modeled by exponential functions and not linear function?

Why are the cars values modeled by exponential functions and not linear function?-example-1

1 Answer

10 votes
If the 1st differences of consecutive y-values are constant or very nearly constant then a linear model will probably fit well. If the ratios of consecutive y-values are constant or very nearly constant then an exponential model will likely work well.
User Ben Browitt
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