13(1) The variable rdintens is expenditures on research and…

13(1) The variable rdintens is expenditures on research and development (R&D) as a percentage of sales. Sales are measured in millions of dollars. The variable profmarg is the profit as a percentage of sales. We estimate the following regression equation: rdintens = 0.472 + 0.321*log(sales) + 0.05*profmarg Interpret the coefficient on log(sales).

11(2). Suppose that the estimated equation in 11(1) is as fo…

11(2). Suppose that the estimated equation in 11(1) is as follows:  beta1 = 0.047, beta2 = 0.00078, beta3 = 0.019, beta4 = 0.01 Both of person A’s parents have a college education, so pareduc = 32 (the total number of schooling years of her parents). Both of person B’s parents have a high school education, so, pareduc = 24. What is the difference in the estimated return to education holding other factors fixed?

17(i) Let arr86 be a binary variable equal to 1 if a man was…

17(i) Let arr86 be a binary variable equal to 1 if a man was arrested during 1986, and 0 otherwise. A linear probability model is: arr86 = 0.441 – 0.162*pcnv + 0.0061*avgsen – 0.0023*tottime – 0.022*ptime86 – 0.0428*qemp86 where pcnv is the proportion of prior arrests that led to a conviction, avgsen is the average sentence served from prior convictions (in months), tottime is months spent in prison since age 18 prior to 1986, ptime86 is months spent in prison in 1986, and qemp86 is the number of quarters (0 to 4) that the man was legally employed in 1986.  How to interpret the intercept 0.441?