Question: The following equation was estimated using the data in CEOSALI.RAW: This equation allows roe to have a dimming effect on log (salary). Is this generality

The following equation was estimated using the data in CEOSALI.RAW:

The following equation was estimated using the data in CEOSALI.RAW:
This

This equation allows roe to have a dimming effect on log (salary). Is this generality necessary? Explain why or why not.

log(salary) 4.322 .276 log(sales) +.0215 roe 00008 roe (324) 033) 209, R.282 0129 00026)

Step by Step Solution

3.40 Rating (163 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The generality is not necessary The t statistic on roe 2 is only about 30 which s... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

839-M-E-E-A (572).docx

120 KBs Word File

Students Have Also Explored These Related Econometric Questions!