Question
The following regression equation was estimated for CEO salaries (in millions of dollars): log(salary) = 0.2 + 0.01*log(sales) + 0.03*ceoten +0.001*ceoten^2, where sales is in
The following regression equation was estimated for CEO salaries (in millions of dollars): log(salary) = 0.2 + 0.01*log(sales) + 0.03*ceoten +0.001*ceoten^2, where sales is in 1000s of units and ceoten is the CEO's years of tenure in the company. Please answer the following questions in the space provided below.
a. What is the estimated increase in salary of a CEO for an additional year of tenure?
b. What is the estimated salary of a CEO with sales of 30,000 units and 10 years of tenure? (do you use 30 or 30,000?)
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Entrepreneurship
Authors: Andrew Zacharakis, William D Bygrave
5th Edition
1119563097, 9781119563099
