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Here are the same data you saw in Exercise 49 after re-expressions as the square root of assets and the logarithm of assets:

1215_Figure 8.jpg

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 assests?

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