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The following table was created using the data in CEOSAL2, where standard errors are in parentheses below the coefficients: are Dependent Variable: log(salary) (2) .158 (.040) .112 (.050) -.0023 (.0022) Independent Variables (3) .188 (.040) .100 (.049) -.0022 (.0021) (1) log(sales) 224 (.027) log(mktval) profmarg Dependent Variable: log(salary) Independent Variables (1) (2) (3) ceoten .0171 (.0055) -.0092 (.0033) comten intercept 4.94 4.62 4.57 (0.20) (0.25) (0.25) Observations 177 177 177 R-squared .281 .304 .353 The variable mktval is market value of the firm, profmarg is profit as a percentage of sales, ceoten is years as CEO with the current company, and comten is total years with the company. (i) Comment on the effect of profmarg on CEO salary. (ii) Does market value have a significant effect? Explain. (iii) Interpret the coefficients on ceoten and comten. Are these explanatory variables statistically significant? (iv) What do you make of the fact that longer tenure with the company, holding the other factors fixed, is associated with a lower salary?

The following table was created using the data in CEOSAL2, where standard errors are in parentheses below the coefficients: are Dependent Variable: log(salary) (2) .158 (.040) .112 (.050) -.0023 (.0022) Independent Variables (3) .188 (.040) .100 (.049) -.0022 (.0021) (1) log(sales) 224 (.027) log(mktval) profmarg Dependent Variable: log(salary) Independent Variables (1) (2) (3) ceoten .0171 (.0055) -.0092 (.0033) comten intercept 4.94 4.62 4.57 (0.20) (0.25) (0.25) Observations 177 177 177 R-squared .281 .304 .353 The variable mktval is market value of the firm, profmarg is profit as a percentage of sales, ceoten is years as CEO with the current company, and comten is total years with the company. (i) Comment on the effect of profmarg on CEO salary. (ii) Does market value have a significant effect? Explain. (iii) Interpret the coefficients on ceoten and comten. Are these explanatory variables statistically significant? (iv) What do you make of the fact that longer tenure with the company, holding the other factors fixed, is associated with a lower salary?

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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The following table was created using the data in CEOSAL2, where standard errors are in parentheses below the coefficients: are Dependent Variable: log(salary) (2) .158 (.040) .112 (.050) -.0023 (.0022) Independent Variables (3) .188 (.040) .100 (.049) -.0022 (.0021) (1) log(sales) 224 (.027) log(mktval) profmarg
Transcribed Image Text:The following table was created using the data in CEOSAL2, where standard errors are in parentheses below the coefficients: are Dependent Variable: log(salary) (2) .158 (.040) .112 (.050) -.0023 (.0022) Independent Variables (3) .188 (.040) .100 (.049) -.0022 (.0021) (1) log(sales) 224 (.027) log(mktval) profmarg
Dependent Variable: log(salary) Independent Variables (1) (2) (3) ceoten .0171 (.0055) -.0092 (.0033) comten intercept 4.94 4.62 4.57 (0.20) (0.25) (0.25) Observations 177 177 177 R-squared .281 .304 .353 The variable mktval is market value of the firm, profmarg is profit as a percentage of sales, ceoten is years as CEO with the current company, and comten is total years with the company. (i) Comment on the effect of profmarg on CEO salary. (ii) Does market value have a significant effect? Explain. (iii) Interpret the coefficients on ceoten and comten. Are these explanatory variables statistically significant? (iv) What do you make of the fact that longer tenure with the company, holding the other factors fixed, is associated with a lower salary?
Transcribed Image Text:Dependent Variable: log(salary) Independent Variables (1) (2) (3) ceoten .0171 (.0055) -.0092 (.0033) comten intercept 4.94 4.62 4.57 (0.20) (0.25) (0.25) Observations 177 177 177 R-squared .281 .304 .353 The variable mktval is market value of the firm, profmarg is profit as a percentage of sales, ceoten is years as CEO with the current company, and comten is total years with the company. (i) Comment on the effect of profmarg on CEO salary. (ii) Does market value have a significant effect? Explain. (iii) Interpret the coefficients on ceoten and comten. Are these explanatory variables statistically significant? (iv) What do you make of the fact that longer tenure with the company, holding the other factors fixed, is associated with a lower salary?
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