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Suppose a firm compensates its CEO according to I = 250,000 + 0.0317 X + 0.01 Y, where I = total compensation of the CEO, X = company profits (in millions), and Y = Sales (in millions). Assume that X = $10 (millions), and Y = $20 (millions). What percentage of the CEO's total earnings is independent of performance?

Econometrics, Economics

  • Category:- Econometrics
  • Reference No.:- M9693126

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