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All of a sudden, your research assistant comes running in and says that one respondent belatedly sent in his response. His response for x, coincidentally happens to be 80, the same as the mean or average of the x values used in the regression already computed regression but his response for y is twice the average or mean of the y values used in the regression. Would the slope change if this additional data point were to be included? Explain why or why not. (Prove if possible.) The following is a regression of the logarithm of salaries of CEOS (Isalary) on the return on equity (roe) and the logarithm of sales (Isales) of their respective companies and on an indicator or dummy variable finance (finance = 1 if the company is in the finance sector and = 0 otherwise):

All of a sudden, your research assistant comes running in and says that one respondent belatedly sent in his response. His response for x, coincidentally happens to be 80, the same as the mean or average of the x values used in the regression already computed regression but his response for y is twice the average or mean of the y values used in the regression. Would the slope change if this additional data point were to be included? Explain why or why not. (Prove if possible.) The following is a regression of the logarithm of salaries of CEOS (Isalary) on the return on equity (roe) and the logarithm of sales (Isales) of their respective companies and on an indicator or dummy variable finance (finance = 1 if the company is in the finance sector and = 0 otherwise):

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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All of a sudden, your research assistant comes running in and says that one respondent belatedly sent in his response. His response for x, coincidentally happens to be 80, the same as the mean or average of the x values used in the regression already computed regression but his response for y is twice the average or mean of the y values used in the regression. Would the slope change if this additional data point were to be included? Explain why or why not. (Prove if possible.) The following is a regression of the logarithm of salaries of CEOS (Isalary) on the return on equity (roe) and the logarithm of sales (Isales) of their respective companies and on an indicator or dummy variable finance (finance =1 if the company is in the finance sector and = 0 otherwise): Isalary = 4.306 + 0.019 roe + 0.274 Isales +0.183 finance R = 0.30 number of observations = 209
Transcribed Image Text:All of a sudden, your research assistant comes running in and says that one respondent belatedly sent in his response. His response for x, coincidentally happens to be 80, the same as the mean or average of the x values used in the regression already computed regression but his response for y is twice the average or mean of the y values used in the regression. Would the slope change if this additional data point were to be included? Explain why or why not. (Prove if possible.) The following is a regression of the logarithm of salaries of CEOS (Isalary) on the return on equity (roe) and the logarithm of sales (Isales) of their respective companies and on an indicator or dummy variable finance (finance =1 if the company is in the finance sector and = 0 otherwise): Isalary = 4.306 + 0.019 roe + 0.274 Isales +0.183 finance R = 0.30 number of observations = 209
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