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.¨
I can`t get the 2.72 and its driving me crazy. please help me. thanks!
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