Consider an equation to explain salaries of CEOS in terms of annual firm sales, return on equity (roe, in percentage points, so 0-100), and return on the firm's stock (ros, in percentage points, so 0-100) log(salary) = Bo + Bilog(sales) + B2roe + Bzros + u. 1. In terms of the model parameters, state the null hypothesis that, after controlling for sales and ros, roe has no effect on CEO salary. State the alternative that return on equity affects CEO salary. 2. Using relevant data, the following equation was obtained by OLS: log(salary) =4.32 + .280log(sales) + .0174roe + .00024ros

Q: please explaine how to get 42?

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