Suppose that 5700 firms in Canada are pooled together to determine by cross- sectional and regression analysis, OLS, whether the statement "CEO salary, in Canada, is explained by sales, roe and ros" is correct. You are appointed as the Econometrician who, with the following information, at a significance level a=5%, is going to determine whether the statement is correct. In(Salary), = 1.185 + 0.558ln(Sales); + 0.847 ROE, + 0.345 ROS, + ê, (A) With ê'ê = 3.818 ; Test Jarque – Bera: 2.147 In(Salary); = 1.943 + 0.576ln(Sales); + ê; (B) With ê'ê = 4.218

MATLAB: An Introduction with Applications
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Suppose that 5700 firms in Canada are pooled together to determine by cross-
sectional and regression analysis, OLS, whether the statement "CEO salary, in
Canada, is explained by sales, roe and ros" is correct. You are appointed as the
Econometrician who, with the following information, at a significance level a=5%, is
going to determine whether the statement is correct.
In(Salary); = 1.185 + 0.558ln(Sales), + 0.847 ROE, + 0.345 ROS, + ê,
(A)
With ê'ê = 3.818 ; Test Jarque – Bera: 2.147
In(Salary); = 1.943 + 0.576ln(Sales), + ê;
(B)
With ê'ê = 4.218
Transcribed Image Text:Suppose that 5700 firms in Canada are pooled together to determine by cross- sectional and regression analysis, OLS, whether the statement "CEO salary, in Canada, is explained by sales, roe and ros" is correct. You are appointed as the Econometrician who, with the following information, at a significance level a=5%, is going to determine whether the statement is correct. In(Salary); = 1.185 + 0.558ln(Sales), + 0.847 ROE, + 0.345 ROS, + ê, (A) With ê'ê = 3.818 ; Test Jarque – Bera: 2.147 In(Salary); = 1.943 + 0.576ln(Sales), + ê; (B) With ê'ê = 4.218
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