Why must the quadratic term carry exactly ½, and when is linear approximation no longer enough?
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The formula
Write the formula for near , then apply it to , computing , and to show is the only factor recovering .
Rate of convergence of for
Use with to get , then record that the quadratic term, of order , measures the size of .
Start linear, go quadratic only when forced
State the working rule for choosing between linear and quadratic approximation, with log-linear versus log-quadratic models in economics as the example.
Worked product: to second order
Write the quadratic approximations of both factors, multiply keeping only terms up to , reach , and record the versus sizes at .