A regression function used to examine the factors affecting the chief executive officer salary in financial, manufacturing, utilities and transportation sector is given as below. Figures in parentheses are standard errors. Ln Y = 4.59 +0.257 log(X) + 0.158 D₁ +0.181D21-0.283D31 se-(0.30) (0.032) (0.085) (0.099) (0.089) n = 209, R² = 0.357 Where Y = salary (in thousands) X₁ = annual sales {1, D₁ o, D₂- financial sector otherwise manufacturing sector otherwise to, {1, utililities sector D₁ o, otherwise Interpret the coefficient for D₂ Compute the approximate percentage difference in estimated salary between the utilities and transportation sector, holding annual sales fixed. Is the difference statistically significant at 1% level?
A regression function used to examine the factors affecting the chief executive officer salary in financial, manufacturing, utilities and transportation sector is given as below. Figures in parentheses are standard errors. Ln Y = 4.59 +0.257 log(X) + 0.158 D₁ +0.181D21-0.283D31 se-(0.30) (0.032) (0.085) (0.099) (0.089) n = 209, R² = 0.357 Where Y = salary (in thousands) X₁ = annual sales {1, D₁ o, D₂- financial sector otherwise manufacturing sector otherwise to, {1, utililities sector D₁ o, otherwise Interpret the coefficient for D₂ Compute the approximate percentage difference in estimated salary between the utilities and transportation sector, holding annual sales fixed. Is the difference statistically significant at 1% level?
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question

Transcribed Image Text:A regression function used to examine the factors affecting the chief executive officer salary
in financial, manufacturing, utilities and transportation sector is given as below. Figures in
parentheses are standard errors.
Ln Y = 4.59 +0.257 log(X) + 0.158 D₁ +0.181D21 -0.283D31
se = (0.30) (0.032)
(0.089)
(0.085) (0.099)
n = 209, R² = 0.357
Where
Y = salary (in thousands)
X₁ = annual sales
D₁-
D₂=
D₂=
(1, financial sector
otherwise
lo,
manufacturing sector
otherwise
utililities sector
otherwise
Interpret the coefficient for D₂
Compute the approximate percentage difference in estimated salary between the utilities and
transportation sector, holding annual sales fixed. Is the difference statistically significant at
1% level?
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step 1: Write the given information.
VIEWStep 2: Provide interpretation for the coefficient for D2.
VIEWStep 3: Approximate the percentage difference in estimated salary between the utilities and transportation.
VIEWStep 4: Determine whether the difference statistically significant at 1% level.
VIEWSolution
VIEWStep by step
Solved in 5 steps with 5 images

Recommended textbooks for you

MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc

Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning

Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning

MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc

Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning

Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning

Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON

The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman

Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman