# Suppose that Person A earns $35,000 per year and Person B earns $42,000. (i) Find the exact percentage by which Person Bs salary exceeds Person As. (ii) Now, use the difference in natural logs to find the approximate percentage difference.

Chapter 19, Problems #6

Suppose that Person A earns $35,000 per year and Person B earns $42,000.

(i) Find the exact percentage by which Person B’s salary exceeds Person A’s.

(ii) Now, use the difference in natural logs to find the approximate percentage difference.

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## Introductory Econometrics A Modern Approach

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