Chapter 5, Problem 39E

a)

To determine

To identify which re-expression do you prefer.

Answer to Problem 39E

The second re-expression.

Explanation of Solution

Given:

  

The first re-expression is left skewed, while second is symmetric. Therefore, I prefer second re-expression using log.

b)

To determine

To explain the value of 50 which actually indicate about the company’s assets.

Answer to Problem 39E

The company’s asset is 2500.

Explanation of Solution

Given:

  

The value of 50 means that the company’s assets is

  ${50}^2=2500$

Hence, it is 2500.

c)

To determine

To find the value of 3 which actually indicate about the company’s assets in the logarithm re-expression.

Answer to Problem 39E

The company’s asset is 1000.

Explanation of Solution

Given:

  

The value of 3 means that the company’s assets is

  ${10}^3=1000$

Hence, it is 1000.