The following model is used to explain whether a firm is tak
The following model is used to explain whether a firm is taken over by another firm during a year:
P(TAKEOVER=1|X)= f(b0avgprofit+b1marketvalue+b2debt+b3ceosalary+b4ceoage)
State the Null hypothesis that, other factors being equal, variables related to CEO have no effect on the probability of takeover. How many df are in the Chi-square distribution for the LR or the Wald test?
Solution

