Considering the table below where the variablemktvalis market value of the firm,profmargis profit as a percentage of sales,ceotenis years as CEO (chief executive officer) with the current company, andcomtenis total years with the company.

1. (a)Comment on the effect ofprofmargon CEO salary in model (2) and (3).
2. (b)Hasmktvala significant effect in model (3)? Explain.
3. (c)Interpret the coefficients onceotenandcomten. Are these explanatory variables statistically significant?
4. (d)Compute the 95% confidence interval for the coefficient ofprofmargin model (2).

Dependent Variable: log(salary) Independent Variables (2) (3) log(sales) .224 158 188 (.027) (.040) 1040) logimkival) .112 .100 (.050) (.049) profmarg -.0023 -.0022 (.0022) (0021) cepten 0171 (0055) counten -.0092 (0033) intercept 4.94 4.62 4.57 (0.20) 10.25) (0.25) Observations 177 177 177 R-squared .281 304 .353