Sunday, March 15, 2009

Furniture Brands Math Lesson

An inverse or negative relationship is a mathematical relationship in which one variable, say y (share price), decreases as another, say x (executive compensation), increases. For a linear (straight-line) relation, this can be expressed as y = a-bx, where -b is a constant value less than zero and a is a constant. For example, there is an inverse relationship between executive compensation and shareholder returns.


(PERFORMANCE GRAPH)

No comments:

Post a Comment