Power Law

Question 1

Power law

Answer 1

Y=MX^B
Y=result,X=variable (things u can change)
B=order of scaling(exponent),M=constant (unchanging)
A small change in value of X leads to proportionally large change in Y.
Its represent non linear relationship.
Small changes in complex system can create sudden and large changes.e g black swan event.
Compounding is a power laws.

B=1 linear rship
B=2 secnd order power law

Question 2

Power law

Answer 2

Y=MX^B
Y=result,X=variable (things u can change)
B=order of scaling(exponent),M=constant (unchanging)
A small change in value of X leads to proportionally large change in Y.
Its represent non linear relationship.
Small changes in complex system can create sudden and large changes.e g black swan event.
Compounding is a power laws.

B=1 linear rship
B=2 secnd order power law
.