Consider an estimated regression explaining the salaries of CEOS(in millions of dollars) in terms of annual firm sales (in millions of dollars), return on equity (roe in percentage form), and return...


Consider an estimated regression explaining the salaries of CEOS(in millions of dollars) in terms of<br>annual firm sales (in millions of dollars), return on equity (roe in percentage form), and return on<br>fırm's stock (ros, in percentage form) :<br>log(salary) = 4.32 + 0.018sales + 0.0174roe + 0.00024ros<br>How would you interpret the estimated coefficient of sales ?<br>When sales increase by 1 million dollars, CEOS' salary is expected to increase<br>by 0.018%.<br>When sales increase by 1 million dollars, CEOS' salary is expected to increase<br>by 1.8%.<br>When sales increase by 1%, CEOS' salary is expected to increase 0.18%.<br>When sales increase by 100%, CEOS' salary is expected to increase 0.18%.<br>

Extracted text: Consider an estimated regression explaining the salaries of CEOS(in millions of dollars) in terms of annual firm sales (in millions of dollars), return on equity (roe in percentage form), and return on fırm's stock (ros, in percentage form) : log(salary) = 4.32 + 0.018sales + 0.0174roe + 0.00024ros How would you interpret the estimated coefficient of sales ? When sales increase by 1 million dollars, CEOS' salary is expected to increase by 0.018%. When sales increase by 1 million dollars, CEOS' salary is expected to increase by 1.8%. When sales increase by 1%, CEOS' salary is expected to increase 0.18%. When sales increase by 100%, CEOS' salary is expected to increase 0.18%.

Jun 11, 2022
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