Assuming we have a linear standard model that represents the relationship between executive salaries and return on investment, the linear standard model can be written as follows:

where it represents:

: Executive salaries measured in US dollars (dependent variable).

Required:

Required using RStudio	Filled out by the student to apply the code with the result
Obtain the data note that the file name is ceosal1 and specify the number of views and the number of variables in the data. Tip: Data can be called from the following package Wooldridge Library Data ("CEOSAL1") Siosal1 NROW (CEOSAL1) Nkol (Siosal 1) In the absence of the package, it is necessary to download the package and then save it in the R program, with the importance of using the following code attach(ceosal1) in order to use variables in the data directly.
Obtain variance between executive salaries and return on investment Tip: The code can be used cov(x,y)
Get variance for ROE variable Tip: The var(x,y) code can be used
Average Salaries of Executive Directors (Salary)
Average Return on Investment (ROE)
Get value and value According to the following equation:
Re-estimating the linear model using lm() code to get and the value of
Graph of dependent variable and independent variable
Line mode with graph
By graph estimate the type of relationship between executive salaries and return on investment