That looks good but is ros the sole contributor to market performance variable wise? (I'm just curious).
log(salary) = B0 + B1log(sales) +B2roe + B3ros + u
where salary is CEO salary, sales are firm sales, roe is return on equity in percentage form, ros is return on the firm's stock in percentage form.
the question is 'controlling for the other variables in the model, state a null hypothesis that says that ros has no effect on CEO salary and an alternate hypothesis that increased market performance increases a CEO's salary.
I would say H0: B3 =0 and H1: B3>0
is that correct?