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Business, 18.05.2021 14:00 magicgeek4980
Exercise 3 Consider an equation to explain salaries of CEOs in terms of annual firm sales, return
on equity (roe, in percent form), and a dummy variable called, rosneg, which is equal to one if
the return on the firm's stock over the 2008-2012 period is negative and equal to zero if it is
nonnegative
In salary) = Be + B, In sales) + B roe + B rosneg + u.
-266. How would you
Suppose that we estimate the equation above and obtain a value of B,
interpret this number?
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Answers: 1
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Exercise 3 Consider an equation to explain salaries of CEOs in terms of annual firm sales, return
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