1. We are interested in estimating the factors that affect CEO's salary. We con- struct the following model, log(salary) = Bo + B1 log(sales) + B2roe + Baroe? (1) Using the data in RDCHEM.RAW, the following equation was obtained by OLS: log(salary) = 4.322 +0.276 log(sales) + 0.0215roe - 0.00008roe, (0.324) (0.033) (0.0129) (0.00026) n = 32, R = 0.1484

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Types of Bias

Statistics is the study of data collection, organization, analysis, interpretation, and presentation. Statistical bias is a characteristic of a statistical technique or its findings in which the expected value deviates from the actual root quantitative parameter being estimated. According to the actual definition of bias, it refers to the tendency of a statistic to overestimate or underestimate a parameter.