Question: C7.5 In Problem 4.2, we added the return on the firm's stock, ros, to a model explain- ing CEO salary; ros turned out to be
C7.5 In Problem 4.2, we added the return on the firm's stock, ros, to a model explain- ing CEO salary; ros turned out to be insignificant. Now, define a dummy variable, rosneg, which is equal to one if ros <0 and equal to zero if ros0. Use CEOSALI.RAW to log(salary) = B+ Blog(sales) + Broe + Brosneg + u. the interpretation and statistical significance of 3.
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