# Reading 8 example 2 Help!

I need help in example 2 reading 8 from the CFAI.

where it says ¨Because Sizei,t is the natural (base e or 2.72) log of sales, an increase of 1 in Sizei,t is the same as a 2.72-fold increase in sales. Thus, the estimated coefficient of approximately –0.7 for Sizei,t implies that every 2.72-fold increase in sales of the MNC (an increase of 1 in Sizei,t) is associated with an expected decrease of 0.7 in Tobin’s qi,t of the MNC, holding constant the other five independent variables in the regression

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Put 1 into your calculator, then press the ex button.  You’ll get 2.718281828 … .

Simplify the complicated side; don't complify the simplicated side.

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Well, that was easy. Thanks lol

My pleasure.

Simplify the complicated side; don't complify the simplicated side.

Financial Exam Help 123: The place to get help for the CFA® exams
http://financialexamhelp123.com/