Fit an exponential curve to your data using the least squares method. Get equation, R², and a clear graph.
Method: Linearization by taking natural log of y, then ordinary least squares. Equivalent to minimizing sum of squared residuals on log scale.
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Exponential regression models data that grows or decays at a constant relative rate. It is widely used in science, finance, and engineering to describe processes like population growth, radioactive decay, and compound interest.
The standard exponential model is:
y = a · eb·x
where a is the initial value (when x = 0) and b is the growth (b>0) or decay (b<0) rate.
An equivalent form often used in finance is:
y = a · (eb)x = a · rx with r = eb
Here r is the growth factor per unit x (e.g., if x is time in years, r = 1 + interest rate).
ln(y) = ln(a) + b·x
Y = A + b·x where Y = ln(y) and A = ln(a).
a = eA, b remains the same.
In exponential regression, R² is computed on the original y-values (not the log-transformed ones) to reflect how well the curve fits the actual data:
R² = 1 - SSres / SStot
SSres = Σ (yi - ŷi)² (sum of squared residuals in original units)
SStot = Σ (yi - ȳ)² (total sum of squares around the mean)
R² ranges from 0 to 1, with values close to 1 indicating a very good fit. Caution: R² from log-transformed regression can be misleading; we always report back-transformed R².
For valid inference, the exponential regression via log transformation assumes:
After fitting, you can examine a residual plot (residuals vs. fitted values) to check these assumptions. A funnel shape in the original residuals suggests heteroscedasticity.
Bacterial growth: N(t) = N₀·ekt. Doubling time = ln(2)/k.
Radioactive decay: N(t) = N₀·e-λt. Half-life = ln(2)/λ.
Compound interest: A = P·ert (continuous compounding).
Drug concentration in bloodstream often follows exponential decay after administration.
The term "regression" was coined by Francis Galton in the 19th century. Exponential regression became widely used after the development of calculus and the work of mathematicians like Laplace and Gauss on least squares.