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Unformatted text preview: salary = exp(10.6) ≈ $40,134.84. When exper = 5, salary = exp[10.6 + .027(5)] ≈ $45,935.80. (ii) The approximate proportionate increase is .027(5) = .135, so the approximate percentage change is 13.5%. (iii) 100[(45,935.80 – 40,134.84)/40,134.84) ≈ 14.5%, so the exact percentage increase is about one percentage point higher. A.9 (i) The relationship between yield and fertilizer is graphed below. 117 fertilizer 50 100 120 121 yield 122 (ii) Compared with a linear function, the function yield = .120 + .19 fertilizer has a diminishing effect, and the slope approaches zero as fertilizer gets large. The initial pound of fertilizer has the largest effect, and each additional pound has an effect smaller than the previous pound. 118...
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This note was uploaded on 05/03/2009 for the course ECON 418 taught by Professor Breman during the Spring '08 term at Arizona.
 Spring '08
 BREMAN
 Econometrics

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