Hi, I need help answering these questions. I am very lost and need help!

Question 1B: For Both ETF2100 and ETF5910 (34 Marks) *Please begin this question on a new page In 2000, data were collected for 200 CEO Salaries (measured in millions of dollars) and their company's return on equity, RoE (measured in percent) over the previous three years. Consider the following linear regression model. Si = ?1 + ?2Ri + ei (3) where Si is the CEO's salary, Ri is his/her company ROE, and ei is an error term, each for a CEO i. You have no prior beliefs regarding the precise value of ?2. You obtain the following sample statistics: X 200 i=1 Ri = 3110.9, X 200 i=1 Si = 500.3, X 200 i=1 R 2 i = 63786.9, X 200 i=1 RiSi = 10524.8, X 200 i=1 (Si ? S i) 2 = 419.2 (a) Using the information above and the fact that for any sample of data (xi , yi) with N observations the following relations hold: X N i=1 (xi ? x)(yi ? y) = X N i=1 xiyi ? 1 N X N i=1 xi X N i=1 yi (4) X N i=1 (xi ? x) 2 = X N i=1 x 2 i ? 1 N X N i=1 xi !2 (5) Calculate the LS estimates b1 and b2. Be sure to state the formulas using the variable names in this question (not just a generic y and x) and show your calculation. (6 Marks) (b) Interpret the estimated slope coefficient. Be careful about the unit in your interpretation. (3 Marks) (c) Interpret the estimate of the intercept. Does it make sense? Comment. (3 Marks) (d) Suppose the estimate of the variance of the error term, ?? 2 , is 48.78. Compute the estimated variances, var( c b2 | R) and the standard error of b2, se(b2). Be sure to state the formulas using the variable names in this question and show your calculation. (5 Marks) (e) What does the size of the standard error of b2 tell us about our estimation of the relationship between salary and ROE? (3 Marks) (f) How does each of the followings affect the size of the standard errors of the least squares estimators. Give a brief intuition. (i) Smaller variance of the error term (3 Marks) Page 2 of 4 (ii) Smaller sum of squares of the values of R about their sample mean, PN i=1(Ri ? R) 2 (3 Marks) (g) Economic theory states that return on equity should have a positive impact on CEO salary. Test the hypothesis that the return on equity has no impact on CEO salary against the aforementioned economic theory at 5% level of significance. Be sure to write down your null and alternative hypotheses and show all the steps used to conduct your test. (6 Marks) (h) Predict the expected CEO salary when the company's return on equity is 12% over the previous three years. (2 Marks) Question 2: For Both ETF2100 and ETF5910 (26 M

Question 1B: For Both ETF2100 and ETF5910 (34 Marks) *Please begin this question on a new page In 2000, data were collected for 200 CEO Salaries (measured in millions of dollars) and their company's return on equity, RoE (measured in percent) over the previous three years. Consider the following linear regression model. Si = Bit ByRitei (3) where S, is the CEO's salary, R; is his/her company ROE, and e, is an error term, each for a CEO i. You have no prior beliefs regarding the precise value of 82. You obtain the following sample statistics: 200 200 200 Ri = 3110.9, S; = 500.3, R = 63786.9, 1=1 200 200 RiSi = 10524.8, (S, - S;)? = 419.2 (a) Using the information above and the fact that for any sample of data (ri, y;) with / observations the following relations hold: [(m -)(y -9) = (4) E(m - 1) = I'M = IME 12 N N Ci (5) Calculate the LS estimates by and by. Be sure to state the formulas using the variable names in this question (not just a generic y and z) and show your calculation. (6 Marks) (b) Interpret the estimated slope coefficient. Be careful about the unit in your interpretation. (3 Marks) (c) Interpret the estimate of the intercept. Does it make sense? Comment. (3 Marks) (d) Suppose the estimate of the variance of the error term, ", is 48.78. Compute the estimated variances, var(b2 | R) and the standard error of b2, se(62). Be sure to state the formulas using the variable names in this question and show your calculation. (5 Marks) (e) What does the size of the standard error of by tell us about our estimation of the relationship between salary and ROE? (3 Marks) (f) How does each of the followings affect the size of the standard errors of the least squares estimators. Give a brief intuition. (i) Smaller variance of the error term