Question 2 8.14. From a sample of 209 firms, Wooldridge obtained the following regres- sion results": log (salary) = 4.32 + 0.280 log (sales) + 0.0174 roe + 0.00024 ros se = (0.32) (0.035) (0.0041) (0.00054) R² = 0.283 where salary = salary of CEO sales = annual firm sales roe = return on equity in percent ros = return on firm's stock and where figures in the parentheses are the estimated standard errors. a. Interpret the preceding regression taking into account any prior expec-

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