Question

The accompanying data represent the total compensation for 12 randomly selected chief executive officers (CEO) and the company's stock performance in a recent year.

Company Compensation ($mil) Stock Return
(%)

Company A 14.52 75.46

Company B 4.07 64.01

Company C 7.15 142.09

Company D 1.07 32.67

Company E 1.93 10.67

Company F 3.79 30.69

Company G 12.01 0.75

Company H 7.58 69.39

Company I 8.44 58.65

Company J 4.06 55.91

Company K 20.89 24.29

Company L 6.61 32.23

(c) Determine the linear correlation coefficient between compensation and stock return.

r=____?

(round to three decimal places as needed)

Answer #1

Question:
The accompanying data represent the total compensation for 12
randomly selected chief executive officers (CEO) and the
company's stock performance in a recent year. Complete parts (a)
through (d) below.
Company Compensation
($mil) Stock Return (%)
Company
A 14.58 75.45
Company
B 4.07 63.99
Company
C 7.08 142.06
Company
D 1.07 32.69
Company
E 1.98 10.68
Company
F 3.79 30.69
Company
G 12.07
0.72
Company
H 7.56 69.43
Company
I 8.47 58.75
Company
J 4.05 55.95
Company
K 20.85 24.33
Company
L 6.66 32.25
(a) One would think that a higher stock return
would lead to a higher compensation. Based on this, what would...

The accompanying data represent the total compensation for 12
randomly selected chief executives officers(CEO) and the company's
stock performance in a recent year
Company Compensation($mil)Stock Return(%)
Company A 14.56 75.49
Company B 4.09 63.96
Company C 7.07 142.03
Company D 1.04 32.66
Company E 1.91 10.63
Company F 3.76 30.69
Company G 12.03 0.78
Company H 7.63 69.43
Company I 8.47 58.66
Company J 4.06 55.91
Company k 20.92 24.31
Company L 6.67 32.25
(a). One would think that a...

The accompanying data represent the total compensation for 12
randomly selected chief executive officers (CEO) and the
company's stock performance in a recent year. Complete parts (a)
through (d) below.
Company
Compensation ($mil)
Stock Return (%)
Company A
14.5514.55
75.4475.44
Company B
4.094.09
64.0464.04
Company C
7.127.12
142.09142.09
Company D
1.051.05
32.6932.69
Company E
1.971.97
10.6610.66
Company F
3.723.72
30.6130.61
Company G
12.0112.01
0.720.72
Company H
7.567.56
69.4569.45
Company I
8.438.43
58.7558.75
Company J
4.044.04
55.9855.98
Company K
20.9220.92
24.2924.29...

The accompanying data represent the total compensation for 12
randomly selected chief executive officers (CEOs) and the
company's stock performance.
Company Compensation Return
A 14.62 74.84
B 3.29 60.79
C 6.65 141.68
D 1.92 33.03
E 1.78 11.89
F 2.88 30.99
G 11.37 0.92
H 6.81 64.52
I 8.91 52.12
J 3.17 52.88
K 20.67 23.68
L 6.43 31.83
(a) Treating compensation as the explanatory
variable, x, use technology to determine the estimates of β0 and
β1.
The estimate of...

The accompanying data represent the total compensation for 12
randomly selected chief executive officers (CEOs) and the
company's stock performance. Use the data to complete parts (a)
through (d). LOADING... Click the icon to view the data table.
(a) Treating compensation as the explanatory variable, x, use
technology to determine the estimates of beta 0 and beta 1. The
estimate of beta 1 is nothing. (Round to three decimal places as
needed.) Enter your answer in the answer box and...

The accompanying data represent the total compensation for 12
randomly selected chief executive officers (CEOs) and the
company's stock performance. Use the data to complete parts (a)
through (d).
Company Compensation Return
A 15.68 79.64
B 4.57 69.24
C 7.75 146.24
D 1.35 38.22
E 1.33 11.43
F 2.53 29.56
G 12.81 0.53
H 6.71 69.57
I 8.01 55.37
J 3.24 52.04
K 21.37 25.73
L 6.82 30.89
treating compensation as the explanatory variable, x, use
technology to determine...

The accompanying data represent the total compensation for 12
randomly selected chief executive officers (CEOs) and the company's
stock performance. Use the data to complete parts (a) through
(d).
3 Click the icon to view the data table.
Data Table of Compensation and Stock
Performance
Company Compensation (millions of
dollars) StockReturn (%)
A
13.82
71.39
B
3.83
69.37
C
6.16
141.42
D
1.95
37.61
E
1.13
10.34
F
3.71
29.55
G
11.96
0.77
H
6.22
62.48
I
9.31
53.21
J ...

The given data represent the total compensation for 10 randomly
selected CEOs and their company's stock performance in 2009.
Analysis of this data reveals a correlation coefficient of
requals=negative 0.2135−0.2135.
What would be the predicted stock return for a company whose CEO
made $15 million? What would be the predicted stock return for a
company whose CEO made $25 million?
Click the icon to view the compensation and stock performance
data.
Click the icon to view a table of critical...

The given data represent the total compensation for 10 randomly
selected CEOs and their company's stock performance in 2009.
Analysis of this data reveals a correlation coefficient of r equals
= −0.2260. What would be the predicted stock return for a company
whose CEO made $15 million? What would be the predicted stock
return for a company whose CEO made $25 million?
Compensation ($ millions) Stock Return (%)
25.97 5.98
12.55 30.83
19.42 31.48
13.25 79.72
12.68 -8.12
12.11 2.38...

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