Here are the same data you saw in Exercise 47 after re-expressions as the square root of assets (in $M) and the logarithm of assets (in $M):

a) Which re-expression do you prefer? Why?
b) In the square root re-expression, what does the value 50 actually indicate about the company's assets?
c) In the logarithm re-expression, what does the value 3 actually indicate about the company's assets?

Transcribed Image Text:

20 10 75 150 225 Assets 10 2.25 3.003.75 4.50 Log (Assets)