(9) S. L. Sclove. Y vs. X or log Y vs. X? Technometrics 14 (1972), 391-403.
The problem of choosing between the models Y = A + BX and log Y = A + BX is considered. The maximum likelihood method of Box and Cox is compared with the method of using correlation coefficients to make the choice between the two models. The methods are applied to some data from the field of metallurgy. Operating characteristics of the two methods are estimated by simulation. Over a wide range of parameters there is not much difference between the two methods, although there are parameter values for which the correlation method appears markedly inferior to the likelihood method. The likelihood method seems preferable in that it is based on a probability model; this enables the statistician to make a confidence statement about the choice of model.