# 10 b is there evidence to indicate that ceo income x1

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Unformatted text preview: verall model is statistically useful for predicting company proﬁt at α = 0.10. (b) Is there evidence to indicate that CEO income x1 and stock percentage x2 interact? Use a level of α = 0.05. (c) Based on the least squares estimates of the bj parameters, give the estimate of the change in proﬁt for every one thousand dollar increase in a CEO’s income when a CEO owns 2% of the company’s stock. STAT 420 Spring 2014: HW 7 3 University of Illinois Exercise 5 Suppose the interaction model yi = b0 + b1 xi1 + b2 xi2 + b3 xi1 xi2 + ei was ﬁt to n = 20 data points, and the following results were obtained: &gt; sum( lm( y [1] 57 &gt; sum( lm( y [1] 40 &gt; sum( lm( y [1] 45 &gt; sum( lm( y [1] 36 &gt; sum( lm( y [1] 30 &gt; lm( y ~ x1 (Intercept) 10 ~ 1 )\$residuals^2 ) ~ x1 )\$residuals^2 ) ~ x2 )\$residuals^2 ) ~ x1 + x2 )\$residuals^2 ) ~ x1 + x2 + I(x1*x2) )\$residuals^2 ) + x2 + I(...
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## This homework help was uploaded on 04/03/2014 for the course STAT 420 taught by Professor Stepanov during the Spring '08 term at University of Illinois, Urbana Champaign.

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