A Comparative Analysis of the Cobb Douglas Model and the Linear Regression Model Of Order(2)

This paper carried out a comparative analysis of the Cobb-Douglas model and the Linear regression model of order (2) on the data of recharge cards consumption in Nigeria. Results showed that consumption of recharges cards is well explained by the price of the recharge cards and the consumer's income in both models but the two-variable model gives a higher co-efficient of determination 0.96 as compared to that of the Cobb Douglas model of 0.94. We therefore conclude that the two-variable linear regression fits the data better.