(h) Suggest two other quantitative variables that could be included in the regression. How could they improve the estimation of CEO compensation and what impact would you expect them to have on previously estimated coefficients? (4 marks) (1) Provide a short summary brief to explain to a non-economist or non-statistician the key factors that influence all forms of compensation for CEOs based on this sample. 4 marks) Compensation Sales Revenue Number of Employees Capital Investment C (in $000) R (in $m) E (# FTE) KI (in $m) 397.5 87.5 1162.5 18.90 442.5 68.0 731.3 6.84 444.4 123.8 1631.3 26.82 448.1 85.0 918.8 9.00 453.8 132.0 1739.1 28.62 459.4 94.0 1012.5 10.26 474.4 151.8 1992.2 32.94 491.3 123.0 1335.9 14.40 508.1 187.8 1637.5 40.68 534.4 172.5 1253.1 22.14 616.9 343.0 2959.4 74.52 637.5 350.3 2578.1 54.54 661.9 407.3 3003.1 66.06 720.0 554.3 4740.6 120.78 759.4 654.0 5575.0 142.56 770.6 750.3 5587.5 143.64 855.0 1138.8 8540.6 244.26 896.3 1094.0 9240.6 238.86 984.4 2005.3 13660.3 501.12 1057.5 1828.8 399.96 254.4 56.0 13.23 283.2 284.4 286.8 290.4 43.5 79.2 54.4 84.5 13770.0 502.2 315.9 704.7 396.9 751.3 4.79 18.77 6.30 20.03 294.0 437.4 7.18 303.6 314.4 325.2 60.2 97.1 78.7 120.2 860.6 577.1 1061.1 23.06 10.08 28.48 342.0 110.4 812.0 15.50 (h) Suggest two other quantitative variables that could be included in the regression. How could they improve the estimation of CEO compensation and what impact would you expect them to have on previously estimated coefficients? (4 marks) (1) Provide a short summary brief to explain to a non-economist or non-statistician the key factors that influence all forms of compensation for CEOs based on this sample. 4 marks) Compensation Sales Revenue Number of Employees Capital Investment C (in $000) R (in $m) E (# FTE) KI (in $m) 397.5 87.5 1162.5 18.90 442.5 68.0 731.3 6.84 444.4 123.8 1631.3 26.82 448.1 85.0 918.8 9.00 453.8 132.0 1739.1 28.62 459.4 94.0 1012.5 10.26 474.4 151.8 1992.2 32.94 491.3 123.0 1335.9 14.40 508.1 187.8 1637.5 40.68 534.4 172.5 1253.1 22.14 616.9 343.0 2959.4 74.52 637.5 350.3 2578.1 54.54 661.9 407.3 3003.1 66.06 720.0 554.3 4740.6 120.78 759.4 654.0 5575.0 142.56 770.6 750.3 5587.5 143.64 855.0 1138.8 8540.6 244.26 896.3 1094.0 9240.6 238.86 984.4 2005.3 13660.3 501.12 1057.5 1828.8 399.96 254.4 56.0 13.23 283.2 284.4 286.8 290.4 43.5 79.2 54.4 84.5 13770.0 502.2 315.9 704.7 396.9 751.3 4.79 18.77 6.30 20.03 294.0 437.4 7.18 303.6 314.4 325.2 60.2 97.1 78.7 120.2 860.6 577.1 1061.1 23.06 10.08 28.48 342.0 110.4 812.0 15.50