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?