Interpret the preceding regression taking into account

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From a sample of 209 firms, Wooldridge obtained the following regression 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 expectations that you may have about the signs of the various coefficients.

b. Which of the coefficients are individually statistically significant at the 5% level?

c. What is the overall significance of the regression? Which test do you use? And why?

Reference no: EM131866290

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