Computer Exercises

C1.2
Use the data in BWGHT.RAW to answer this question.

. summ

Variable | Obs Mean Std. Dev. Min Max
-------------+--------------------------------------------------------------------------------
faminc | 1388 29.02666 18.73928 .5 65 cigtax | 1388 19.55295 7.795598 2 38 cigprice | 1388 130.559 10.24448 103.8 152.5 bwght | 1388 118.6996 20.35396 23 271 fatheduc | 1192 13.18624 2.745985 1 18
-------------+--------------------------------------------------------------------------------
motheduc | 1387 …show more content…

Std. Err. t P>|t| [95% Conf. Interval]
-------------+--------------------------------------------------------------------------------------------------------------
ceoten | .0097236 .0063645 1.53 0.128 -.0028374 .0222846 _cons | 6.505498 .0679911 95.68 0.000 6.37131 6.639686

log(salary)=Bo+B1(ceoten)+u log(salary)=(0.0097236)ceoten+6.505498

The approx predicted percentage increase in salary given one more year as a CEO is 0.97%

C3.3
The file CEOSAL2.RAW contains data on 177 chief executive officers and can be used to examine the effects of fir, performance on CEO salary. (i) Estimate a model relating annual salary to firm sales and market value. Make the model of the constant elasticity variety for both independent variables. Write the results out in equation form.

. regress lsalary lsales lmktval

Source | SS df MS Number of obs = 177
-------------+----------------------------------------------------------------------- F( 2, 174) = 37.13 Model | 19.3365617 2 9.66828083 Prob