The issues regarding executive compensation have received extensive media attention. Consider a regression model that links CEO compensation (in $ millions) with the total assets of the firm (in $ billions) and the firm's industry. Dummy variables are used to represent four industries: Manufacturing Technology d₁, Manufacturing Other d₂, Financial Services d₃, and Nonfinancial Services d₄. A portion of the data for 455 CEOs is shown in the accompanying table.

1. Estimate the model: y = ₀ + ₁x + ₂d₁ + ₃d₂ + ₄d₃ + , where y and x denote compensation (in $ million) and assets (in $ billion), respectively. The nonfinancial services industry is used for reference.

2.At the 5% significance level, can we conclude that compensation is higher in Manufacturing Other than in Manufacturing Technology?

Compensation	Assets	d1	d2	d3	d4
16.58	20.92	1	0	0	0
26.92	32.66	1	0	0	0
11.83	64.79	0	0	1	0
0.91	0.60	1	0	0	0
3.44	2.00	1	0	0	0
10.25	10.22	1	0	0	0
25.09	46.03	0	0	1	0
8.12	2.49	0	0	1	0
14.12	58.08	0	0	1	0
2.47	6.23	0	1	0	0
11.57	35.44	0	1	0	0
7.61	2.16	0	1	0	0
9.33	8.56	0	1	0	0
15.38	3.01	0	1	0	0
10.35	4.31	1	0	0	0
6.63	3.17	1	0	0	0
4.89	13.74	0	1	0	0
23.98	156.81	0	0	1	0
3.89	2.03	1	0	0	0
33.99	106.11	0	1	0	0
11.24	19.41	0	0	1	0
3.24	18.90	0	1	0	0
14.22	37.08	0	1	0	0
29.14	121.14	0	0	1	0
7.01	23.96	0	0	1	0
21.23	916.23	0	0	1	0
7.23	1.96	1	0	0	0
24.08	31.54	1	0	0	0
13.43	38.78	0	1	0	0
9.94	16.47	0	1	0	0
2.63	0.60	1	0	0	0
5.28	21.79	0	1	0	0
5.63	10.15	0	0	1	0
6.04	12.36	0	0	1	0
3.31	3.41	0	0	1	0
2.7	21.97	0	0	1	0
60.73	208.13	0	1	0	0
4.51	8.71	0	0	0	1
4.77	5.52	0	0	1	0
5.28	4.26	0	1	0	0
2.24	1.03	1	0	0	0
64.63	23.88	0	1	0	0
13.32	5.00	0	1	0	0
8	8.26	0	1	0	0
6.29	5.10	0	1	0	0
2.46	11.91	0	0	1	0
27.87	1375.77	0	0	1	0
2.27	10.38	0	0	1	0
13.63	102.66	0	0	1	0
8.13	2.27	1	0	0	0
13.58	13.71	1	0	0	0
8.44	115.26	0	0	1	0
5.74	3.60	0	1	0	0
5.8	3.00	0	1	0	0
12.2	8.47	1	0	0	0
10.34	5.55	0	1	0	0
6.7	17.19	0	0	1	0
3.59	9.30	0	0	1	0
8.36	19.54	1	0	0	0
2.62	2.76	0	0	1	0
9.8	26.86	1	0	0	0
9.9	4.31	1	0	0	0
3.58	4.54	1	0	0	0
13.37	31.05	0	1	0	0
4.03	1.51	0	1	0	0
3.69	1.66	0	1	0	0
37.44	119.22	0	0	1	0
4.81	11.10	0	0	1	0
14.82	49.50	0	1	0	0
4.65	7.21	0	0	1	0
28.64	43.27	0	1	0	0
28.77	2.00	1	0	0	0
5.19	17.37	0	1	0	0
6.34	1.93	0	1	0	0
2.54	7.60	0	1	0	0
5.33	1.95	0	1	0	0
15.06	20.27	0	1	0	0
31.6	129.23	0	1	0	0
3.52	4.14	0	0	1	0
4.96	1.40	0	0	1	0
16.76	49.17	0	0	1	0
21.01	43.65	0	0	1	0
3.16	4.51	0	1	0	0
2.21	16.61	0	0	1	0
13.9	70.44	0	0	1	0
25.98	1689.18	0	0	1	0
9.31	18.80	0	1	0	0
4.87	15.71	0	1	0	0
32.34	29.70	0	1	0	0
5.75	24.36	0	1	0	0
1.69	1.10	1	0	0	0
23.26	8.82	0	1	0	0
1.75	1.00	0	0	0	1
26	106.90	0	1	0	0
8.61	55.51	0	0	1	0
3.61	41.87	0	0	1	0
9.98	32.50	0	0	1	0
43.44	135.89	0	1	0	0
10.28	5.37	0	1	0	0
4.72	25.77	0	1	0	0
20.06	21.64	0	1	0	0
8.62	2.48	1	0	0	0
10.01	5.30	1	0	0	0
11.29	12.14	0	1	0	0
48.13	187.52	0	0	1	0
2.04	4.57	0	1	0	0
12.94	5.28	0	0	1	0
13.77	24.68	0	1	0	0
2.96	12.48	0	0	1	0
13.58	7.18	0	1	0	0
24.02	17.93	0	0	0	1
5.17	1.91	1	0	0	0
5.07	3.85	0	1	0	0
19.61	11.01	1	0	0	0
11.03	6.91	0	1	0	0
1.59	1.82	0	1	0	0
6.14	7.02	0	0	1	0
12.97	32.67	0	1	0	0
2.33	2.43	1	0	0	0
12.47	15.39	0	1	0	0
7.3	50.96	0	1	0	0
20.62	9.51	0	1	0	0
9.07	7.10	0	1	0	0
16.82	45.76	0	1	0	0
4.16	1.87	0	1	0	0
1.55	16.65	0	0	1	0
12.17	4.10	1	0	0	0
5.95	3.07	1	0	0	0
7.33	23.56	0	1	0	0
12.9	61.71	0	1	0	0
2.63	6.44	0	0	1	0
5.43	8.83	0	1	0	0
9.95	49.15	0	0	1	0
10.69	32.53	0	1	0	0
2.99	0.86	1	0	0	0
9.45	5.95	0	1	0	0
8.37	14.78	1	0	0	0
14.13	10.82	1	0	0	0
15.74	12.64	0	0	0	1
6.56	4.11	0	1	0	0
12.74	35.53	0	1	0	0
4.63	1.24	1	0	0	0
5.89	29.55	0	1	0	0
13.64	17.52	1	0	0	0
20.21	17.68	1	0	0	0
6.61	2.73	0	1	0	0
3.18	3.98	0	1	0	0
14.76	30.97	0	1	0	0
7.97	8.58	0	1	0	0
7.08	1.81	0	0	0	1
3.43	14.59	0	0	1	0
1.34	2.36	0	0	1	0
16.43	43.56	0	1	0	0
5.09	5.30	0	0	0	1
13.01	213.68	0	1	0	0
6.93	1.99	1	0	0	0
3.64	0.85	0	0	1	0
12.83	5.91	1	0	0	0
6.11	102.95	0	0	1	0
2.15	34.36	1	0	0	0
3.07	37.25	0	0	1	0
0.98	0.86	0	0	1	0
12.75	31.52	0	1	0	0
4.41	6.15	1	0	0	0
10.75	4.72	0	0	0	1
10.52	2.29	0	1	0	0
28.18	274.33	1	0	0	0
4.41	3.42	0	1	0	0
10.8	13.94	0	1	0	0
9.5	34.41	0	1	0	0
32.11	5.47	0	1	0	0
8.79	1.37	0	1	0	0
3.29	1.18	0	0	0	1
1.36	13.66	0	0	1	0
8.15	15.98	0	1	0	0
2.28	4.95	0	1	0	0
17.12	13.49	1	0	0	0
14.5	21.04	1	0	0	0
17.86	685.00	1	0	0	0
0.24	25.27	0	0	1	0
10.19	330.23	1	0	0	0
3.8	0.57	1	0	0	0
3.84	4.63	0	0	0	1
22.45	7.04	1	0	0	0
9.61	3.93	1	0	0	0
1.05	1.94	0	0	1	0
15.83	6.68	1	0	0	0
0.56	14.37	1	0	0	0
6.6	3.08	0	0	0	1
3.07	4.09	0	1	0	0
15.3	15.95	0	1	0	0
4.34	5.39	1	0	0	0
14.24	21.40	0	0	0	1
3.41	3.15	0	1	0	0
2.79	0.93	0	0	0	1
17.49	306.05	0	0	1	0
8.41	3.20	0	1	0	0
3.7	9.92	0	1	0	0
2.03	2.98	0	1	0	0
5.4	2.69	0	1	0	0
15.01	20.78	0	1	0	0
6.84	1.82	1	0	0	0
2.35	1.18	0	1	0	0
27.7	31.29	1	0	0	0
0.1	3.54	0	0	1	0
13.12	10.03	0	0	1	0
5.33	31.79	0	0	1	0
5.8	8.48	0	0	1	0
2.84	34.05	0	0	1	0
17.03	13.56	0	0	0	1
4.76	1.46	1	0	0	0
2.46	0.53	1	0	0	0
5.39	12.66	0	1	0	0
3.46	1.26	1	0	0	0
6.99	1.94	1	0	0	0
3.97	25.47	0	0	1	0
18.21	11.95	1	0	0	0
4.31	6.16	0	1	0	0
9.81	48.34	1	0	0	0
1.86	10.65	0	0	1	0
2.01	2.56	0	1	0	0
13.73	26.40	0	0	0	1
7.17	11.90	0	0	0	1
10.57	7.24	1	0	0	0
2.91	0.58	0	0	0	1
14.54	3.58	0	0	1	0
4.99	3.70	0	1	0	0
19.9	15.30	0	0	1	0
0.26	4.37	0	1	0	0
28.56	64.71	1	0	0	0
4.02	4.19	0	0	0	1
39.05	1275.23	0	0	1	0
6.52	7.78	1	0	0	0
2.32	4.53	0	1	0	0
14.35	10.64	0	1	0	0
12.02	92.73	0	0	1	0
10.69	16.69	0	1	0	0
2.89	6.70	0	0	1	0
0.0001	12.73	0	1	0	0
6.38	1.89	0	0	0	1
4.99	3.15	1	0	0	0
1.33	0.53	0	1	0	0
9.64	56.60	0	1	0	0
3.05	0.37	1	0	0	0
3.69	12.60	1	0	0	0
21.51	3.94	0	0	0	1
3.23	3.29	0	1	0	0
2.23	4.17	0	1	0	0
10.06	3.09	1	0	0	0
15.23	23.27	1	0	0	0
18.13	151.68	0	0	1	0
9.81	3.32	0	1	0	0
18.6	27.99	1	0	0	0
5.04	73.89	0	0	1	0
3.58	3.51	0	1	0	0
6.36	2.82	1	0	0	0
15.06	4.38	0	1	0	0
2.3	56.11	0	0	1	0
15.34	3.89	0	1	0	0
3.67	4.34	0	0	1	0
17.25	2.37	0	0	0	1
21.37	29.66	0	1	0	0
12.6	8.56	0	0	0	1
8.09	51.22	0	0	1	0
6.3	0.60	0	1	0	0
17.29	12.44	0	1	0	0
5.33	2.86	0	1	0	0
5.99	4.66	0	1	0	0
14.29	37.16	0	0	1	0
12.71	29.48	0	0	0	1
19.88	6.22	0	0	1	0
6.16	9.10	0	1	0	0
9.14	14.42	0	0	1	0
17.04	102.66	0	0	1	0
10.24	44.71	1	0	0	0
91.38	761.16	0	0	1	0
19.36	504.68	0	0	1	0
7.21	6.49	0	0	1	0
2.95	2.21	1	0	0	0
6.68	11.70	0	1	0	0
6.25	1.82	0	0	0	1
8.2	1.48	0	0	0	1
8.66	6.93	0	1	0	0
30.8	8.19	0	1	0	0
0.76	141.29	0	0	1	0
0.23	0.66	1	0	0	0
4.93	7.85	0	1	0	0
6.97	5.26	1	0	0	0
4.4	4.21	0	1	0	0
7.58	6.38	0	1	0	0
2.06	4.24	0	1	0	0
7.33	4.47	0	1	0	0
24.44	25.94	0	1	0	0
8.28	18.56	1	0	0	0
4.99	11.94	0	1	0	0
11.01	57.07	0	0	1	0
21.66	33.11	1	0	0	0
6.22	2.33	1	0	0	0
55.63	29.27	0	1	0	0
11.75	6.33	0	0	0	1
5.57	6.24	0	0	0	1
4.77	4.90	0	1	0	0
13.24	16.86	0	0	0	1
9.65	9.85	0	1	0	0
2.45	0.76	0	0	0	1
7.38	14.91	1	0	0	0
7.91	2.79	0	1	0	0
6.04	8.18	0	1	0	0
7.67	4.35	0	0	0	1
5.5	11.73	0	1	0	0
9.38	30.83	0	1	0	0
7.2	2.60	1	0	0	0
2.34	1.48	1	0	0	0
9.8	116.26	1	0	0	0
7.99	34.44	0	1	0	0
9.43	12.50	0	1	0	0
2.11	3.18	0	0	1	0
7.52	11.39	0	1	0	0
9.37	9.62	1	0	0	0
4.63	4.74	0	0	0	1
1.25	0.87	1	0	0	0
18.07	96.89	0	0	1	0
9.15	6.32	0	1	0	0
2.35	0.78	1	0	0	0
2.79	1.13	0	1	0	0
8.89	9.37	0	1	0	0
4.59	10.80	0	1	0	0
16.85	135.35	0	0	1	0
9.86	26.38	0	1	0	0
5.43	19.19	0	0	1	0
4.68	14.52	0	0	1	0
25.75	433.82	0	0	1	0
9.17	29.19	0	1	0	0
7.68	8.38	0	0	1	0
15.69	13.12	0	1	0	0
9.08	5.48	0	0	0	1
4.01	4.72	0	1	0	0
3.53	2.14	0	0	0	1
5.67	1.90	0	1	0	0
17.23	24.94	1	0	0	0
18.43	114.08	0	0	1	0
3.33	2.69	0	0	0	1
8.17	16.35	0	1	0	0
13.04	1.39	0	0	0	1
8.74	9.62	0	1	0	0
4.9	6.43	0	0	0	1
6.14	14.55	0	0	1	0
7	16.02	0	0	0	1
9.97	5.04	1	0	0	0
29.66	15.77	1	0	0	0
17.53	20.45	0	1	0	0
6.53	1.47	0	0	0	1
9.92	4.19	0	1	0	0
2.1	3.07	0	1	0	0
1.99	4.94	0	1	0	0
12.18	29.10	0	1	0	0
4.52	8.64	0	0	0	1
7.35	4.68	0	0	0	1
5.57	8.35	0	1	0	0
1.93	2.23	1	0	0	0
3.24	0.64	1	0	0	0
3.1	21.61	0	0	1	0
16.63	107.74	0	0	1	0
8.69	4.70	0	1	0	0
5.16	2.33	0	1	0	0
7.85	41.37	0	1	0	0
1.41	13.73	0	1	0	0
21.3	99.96	0	1	0	0
8.15	5.37	0	1	0	0
5.79	4.82	1	0	0	0
3.82	13.05	0	0	1	0
8.45	4.39	0	1	0	0
6.16	3.74	0	1	0	0
9.96	10.89	0	0	0	1
26.76	102.66	0	0	1	0
6.05	5.43	1	0	0	0
22.96	10.46	0	1	0	0
7.57	180.94	0	0	1	0
9.21	1.68	1	0	0	0
4.98	29.79	0	0	1	0
5.1	2.54	0	0	1	0
4.2	7.27	0	1	0	0
3.34	3.72	1	0	0	0
12.37	21.05	0	1	0	0
9.5	9.18	0	0	0	1
3	1.79	1	0	0	0
15.48	4.49	0	1	0	0
11.72	14.50	1	0	0	0
23.67	17.02	1	0	0	0
7.09	2.61	0	0	0	1
5.63	48.17	0	0	1	0
11.35	4.21	0	1	0	0
3.65	14.27	0	0	1	0
4.2	1.58	0	0	1	0
16.08	114.24	0	0	1	0
10.71	12.76	1	0	0	0
8.21	1.88	1	0	0	0
22.48	127.73	0	1	0	0
2.03	14.87	0	0	1	0
4.47	10.97	0	1	0	0
6.34	13.97	0	1	0	0
7.07	3.01	1	0	0	0
17.94	10.68	1	0	0	0
10.01	25.69	0	1	0	0
5.92	214.35	0	0	1	0
2.42	9.16	0	0	1	0
8.28	36.07	0	1	0	0
0.96	1.67	0	1	0	0
15.55	44.80	0	0	1	0
6.17	34.08	0	1	0	0
5.43	5.55	0	1	0	0
8.64	10.20	0	1	0	0
3.47	1.55	0	0	0	1
27.17	46.53	1	0	0	0
14.48	3.07	0	0	0	1
4.7	52.35	0	0	1	0
12.3	5.75	0	1	0	0
3.02	0.75	0	0	0	1
9.94	35.28	0	1	0	0
5.38	12.42	0	0	1	0
1.7	0.76	1	0	0	0
1.61	0.94	0	0	0	1
21.26	178.47	0	1	0	0
5.92	0.74	1	0	0	0
3.19	4.61	1	0	0	0
4.56	15.80	0	0	1	0
16.02	3.51	0	1	0	0
23.85	613.94	0	0	1	0
14.25	344.93	0	0	1	0
5.6	20.87	0	1	0	0
4.48	1.52	1	0	0	0
3.68	3.42	1	0	0	0
14.03	9.36	0	1	0	0
3.08	17.47	0	0	1	0
23.89	51.43	0	0	1	0
29.85	481.87	0	0	1	0
4.17	2.75	0	0	0	1
5.55	2.24	0	0	0	1
1.97	4.96	0	0	1	0
1.07	5.33	0	1	0	0
8.25	11.03	1	0	0	0
10.34	27.42	0	1	0	0
2.55	10.70	0	0	1	0
1.04	4.53	0	1	0	0
32.85	36.16	1	0	0	0
11.2	21.73	0	1	0	0
10.69	21.83	1	0	0	0
8.85	58.88	0	0	1	0
52.06	11.37	0	1	0	0
39.82	11.17	1	0	0	0
4.48	5.79	0	1	0	0
12.43	6.08	0	0	0	1
1.76	0.94	1	0	0	0
11.99	5.85	1	0	0	0
2.3	44.88	0	0	1	0