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).
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