1. Using the data, the following equation was obtained by OLS: log(salary) = 4.32 + 0.600 log(sales) + 0.0194 roe + 0.0294 ros (0.32) (0.235) (0.0051) (0.0074) n = 342 R? = 0.429 1. Does ros have a statistically significant effect on salary at 1% level? By what percentage is salary predicted to increase if ros increases by 30 points? 2. Does roe have a statistically significant effect on salary at 1% level? By what percentage is salary predicted to increase if roe increases by 40 points? 3. Do sales have a statistically significant effect on salary at 5% level? By what percentage is salary predicted to increase if sales increase by 50 percentage?

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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1. Using the data, the following equation was obtained by OLS:
log(salary) = 4.32 + 0.600 log(sales) + 0.0194 roe + 0.0294 ros
(0.0074)
(0.32) (0.235)
n = 342 R? = 0.429
(0.0051)
1. Does ros have a statistically significant effect on salary at 1% level? By what percentage
is salary predicted to increase if ros increases by 30 points?
2. Does roe have a statistically significant effect on salary at 1% level? By what percentage
is salary predicted to increase if roe increases by 40 points?
3. Do sales have a statistically significant effect on salary at 5% level? By what percentage
is salary predicted to increase if sales increase by 50 percentage?
Transcribed Image Text:1. Using the data, the following equation was obtained by OLS: log(salary) = 4.32 + 0.600 log(sales) + 0.0194 roe + 0.0294 ros (0.0074) (0.32) (0.235) n = 342 R? = 0.429 (0.0051) 1. Does ros have a statistically significant effect on salary at 1% level? By what percentage is salary predicted to increase if ros increases by 30 points? 2. Does roe have a statistically significant effect on salary at 1% level? By what percentage is salary predicted to increase if roe increases by 40 points? 3. Do sales have a statistically significant effect on salary at 5% level? By what percentage is salary predicted to increase if sales increase by 50 percentage?
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