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Next: 4. Up: 3. Previous: 3.5

3.6 How viable is the constant change assumption? - a reality check.

Lines are ubiquitous models, but they make an extremely strong assumption, that there is a constant change in y for each unit change in x, regardless of the value of x.

If you know, based on your expertise that this is not likely to be true, then you shouldn't be using a straight line model, or you should be discouraging those around you who are!

What sort of processes tend not to be linear?

*
Learning.
*
Growth.
*
Economies of scale.


next up previous
Next: 4. Up: 3. Previous: 3.5
Richard Waterman
1999-05-03