Gates, Marshall, and Olson (1968) investigated the line transect method of estimating grouse population densities in the case where sighting probabilities are exponential. This work is followed by a simulation study in Gates (1969). A general overview of line transect analysis is presented by Burnham and Anderson (1976). These articles all deal with the ungrouped data case. In the present article, an analysis of line transect data is formulated under the Gates framework of exponential sighting probabilities and in the context of grouped data.