An employment research company estimates that the value of a recent MBA graduate to an accounting company is where is the value of the graduate, is a number of years of prior business experience, and is the graduate school grade point average. If , find when . All the answers were rounded to the nearest hundredth.
A)-2.77
B)-1.56
C)-0.23
D)-0.11
E)0.11

Question

An employment research company estimates that the value of a recent MBA graduate to an accounting company is  where  is the value of the graduate,  is a number of years of prior business experience, and  is the graduate school grade point average. If  , find  when  . All the answers were rounded to the nearest hundredth.
A)-2.77 
B)-1.56 
C)-0.23 
D)-0.11 
E)0.11

Quizplus · Accepted Answer

To find the value of a change in years of prior experience, we need to take the partial derivative of the value function with respect to years of prior experience.

Taking the partial derivative of the value function with respect to years of prior experience gives:

∂V/∂(years of experience) = 0.02*(GPA) - 0.1

Substituting the values given in the question (V = 11.32, prior experience = 3, and GPA = 3.7) gives:

∂V/∂(years of experience) = 0.02*(3.7) - 0.1 = 0.07

Therefore, a one-year increase in prior experience is estimated to increase the value of the MBA graduate by $0.07 million. Rounding to the nearest hundredth gives $0.11 million.

An Employment Research Company Estimates That the Value of a Recent