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Chapter 15. Using Regression to Track Tr... > Working with a Logarithmic Trend

Working with a Logarithmic Trend

A logarithmic trend is one that is the inverse of an exponential trend: The values rise (or fall) quickly in the beginning and then level off. This is a common pattern in business. For example, a new company hires many people up front, and then hiring slows over time. A new product often sells many units soon after it's launched, and then sales level off.

This pattern is described as logarithmic because it's typified by the shape of the curve made by the natural logarithm. Figure 15.25 shows a chart that plots the value LN(x) function for various values of x.


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