Consider an estimated regression explaining the salaries of CEOS(in millions of dollars) in terms of annual fırm sales (in millions of dollars), return on equity (roe in percentage form), and return on fırm's stock (ros, in percentage form) : log(salary) = 4.32 + 0.018sales + 0.0174roe + 0.00024ros How would you interpret the estimated coefficient of sales ? When sales increase by 1 million dollars, CEOS' salary is expected to increase by 0.018%. When sales increase by 1 million dollars, CEOS' salary is expected to increase by 1.8%. When sales increase by 1%, CEOS' salary is expected to increase 0.18%. When sales increase by 100%, CEOS' salary is expected to increase 0.18%.

Consider an estimated regression explaining the salaries of CEOS(in millions of dollars) in terms of annual fırm sales (in millions of dollars), return on equity (roe in percentage form), and return on fırm's stock (ros, in percentage form) : log(salary) = 4.32 + 0.018sales + 0.0174roe + 0.00024ros How would you interpret the estimated coefficient of sales ? When sales increase by 1 million dollars, CEOS' salary is expected to increase by 0.018%. When sales increase by 1 million dollars, CEOS' salary is expected to increase by 1.8%. When sales increase by 1%, CEOS' salary is expected to increase 0.18%. When sales increase by 100%, CEOS' salary is expected to increase 0.18%.

College Algebra

1st Edition

ISBN:9781938168383

Author:Jay Abramson

Publisher:Jay Abramson

Chapter6: Exponential And Logarithmic Functions

Section6.8: Fitting Exponential Models To Data

Problem 2TI: Sales of a video game released in the year 2000 took off at first, but then steadily slowed as time...

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