The file CEOSAL2.RAW contains data on 177 chief executive officers and can be used to examine the effects of firm performance on
CEO salary. (i) Estimate a model relating annual salary to firm sales and market value. Make the model of the constant elasticity variety for both independent variables. Write the results out in equation form. (ii) Add profits to the model from part (i). Why can this variable not be included in logarithmic form
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Answer:
Step-by-step explanation:
A polynomial function is given by the form:
Where a is the leading coefficient, and <em>p</em> and <em>q</em> are the roots (more can be added if necessary).
Our zeros are 3 and (-2 + 2i).
And our leading coefficient <em>a </em>= 1.
Furthermore, by the Complex Root Theorem, if (-2 + 2i) is a zero, then (-2 - 2i) must also be a zero.
So, by substitution, we acquire:
Simplify:
Expand the second and third factors:
Therefore, our polynomial function of least degree and the given zeros will be: