Find the log odds for the high-tech ?rms

Reference no: EM131014245

High-tech companies and stock options. Different kinds of companies compensate their key employees in different ways. Established companies may pay higher salaries, while new companies may offer stock options that will be valuable if the company succeeds. Do high-tech companies tend to offer stock options more often than other companies? One study looked at a random sample of 200 companies. Of these, 91 were listed in the Directory of Public High Technology Corporations, and 109 were not listed. Treat these two groups as SRSs of high-tech and non-high-tech companies. Seventy-three of the high-tech companies and 75 of the non-high-tech companies offered incentive stock options to key employees.6

(a) What proportion of the high-tech companies offer stock options to their key employees? What are the odds?

(b) What proportion of the non-high-tech companies offer stock options to their key employees? What are the odds?

(c) Find the odds ratio using the odds for the high-tech companies in the numerator. Describe the result in a few sentences.

(d) Find the log odds for the high-tech ?rms. Do the same for the non-high-tech ?rms.

(e) De?ne an explanatory variable x to have the value 1 for high-tech ?rms and 0 for non-high-tech ?rms. For the logistic model, we set the log odds equal to β0 + β1 x. Find the estimates b0 and b1 for the parameters β0 and β1 .

(f) Show that the odds ratio is equal to eb1 .

Reference no: EM131014245

Questions Cloud

Describe the symmetry if any of the graph of given function : Let f be the function given by f(x) = √(x4 - 16x2). No calculator allowed. Find the domain of f. Describe the symmetry, if any, of the graph of f.

What is the cost of equity after recapitalization : O’Connell & Co. expects its EBIT to be $105,000 every year forever. The firm can borrow at 7 percent. O’Connell currently has no debt, and its cost of equity is 13 percent and the tax rate is 35 percent. The company borrows $136,000 and uses the proc..

Record nichols investment in the partnership : Prepare the entry to record Nichols's investment in the partnership, assuming the equipment has a fair value of $4,000.

Assuming the securities have equal default risk : Reggie White, a corporate treasurer, is trying to decide which two 1-year securities to purchase: a negotiable CD with nominal yield of 6 percent or a municipal security with a nominal yield of 4.25 percent. The issuing municipality is not in the sam..

Find the log odds for the high-tech ?rms : De?ne an explanatory variable x to have the value 1 for high-tech ?rms and 0 for non-high-tech ?rms. For the logistic model, we set the log odds equal to β0 + β1 x. Find the estimates b0 and b1 for the parameters β0 and β1 .

Hat is the companys days sales in receivables : A company has net income of $191,000, a profit margin of 9.4 percent, and an accounts receivable balance of $130,370. Assuming 70 percent of sales are on credit, what is the company’s days’ sales in receivables?

Labor expense and supply expense to assign direct cost : Your wellness clinic wants to develop a product cost for the following activities using labor expense and supply expense to assign direct cost and visit minutes as a cost driver to assign indirect costs. Projected total costs for your wellness clinic..

Different levels of profitability at different points : Provide a well-organized and persuasive argument supporting 1 of these two arguments that is most relevant to a global manager.

User Account

All Pages