1. Consider an equation to explain salaries of CEOs in terms of annual firm sales, return on equity (roe, in percentage form), and return on the firm's stock (ros, in percentage form). log(salary)=B,+B, log(sales)+B,roe + B ros+u (1) By what percentage is salary predicted to increase if roe increase by 100 points? (2%) (2) By what percentage is salary predicted to increase if ros increase by 100 points? (2%) Now, we obtained the estimated equation: log(salary)= 4.32+0.28log(sales)+ 0.0174roe+ 0.00024ros (.32) 0.035) 0.0041) 0.00054) n=209; R' = 283 Please carry out the following tests with 10% significant level: (3) roe has no effects on salary against the alternative that roe has a positive effect on salary (3%) (4) ros has no effects on salary against the alternative that ros has an effect on salary (3%)