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Suppose that CEO salary, salary, (thousands) is related to rm sales, sales, (millions) and CEO earlier experience, ceoexp, (years) before entering the current rm by
Suppose that CEO salary, salary, (thousands) is related to rm sales, sales, (millions) and CEO earlier experience, ceoexp, (years) before entering the current rm by log(sa1ary) = flu + 31 log(sales) + gceoexp + ,4'3'3ceoaxp2 + a. Select TRUE or FALSE for the following statements: (a) If sales of the firm increases by one million, CEO salary can be predicted to change by 61 thousands. (b) If sales of the rm increases by one million, CEO salary can be predicted to change by 100 x ,31 percents. (c) One percent increase in sales predicts approximately 61 percent change in CEO salary. (d) One percent increase in sales predicts approximately 100 ,81 per- cent change in CEO salary. (e) An additional year of earlier experience predicts ; + 2,133 change in CEO salary. (f) An additional year of earlier experience predicts 100 (g + 2163) percent change in CEO salary
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