ABSTRACT

W hen a model Y = a + fi\g{x 1) + where g and h are user-specified single-valued functions, is substituted for the model Y — a + β\Χ\ + β2Χ2 + crZ, the nature of the trade-off curve is changed, but the existence of a valid trade-off-function still remains to be corroborated. Consider, for example, the

Figure 9.1. W hen a reqression function £1 4-£2 = c yields different values o f c, different density curves f(y\c) are selected.