Question

**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
likely be the explanatory variable?Compensation or Stock
return

**(b)** Draw a scatter diagram of the data. Use
the result from part (a) to determine the explanatory
variable.

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

r =

(Round to three decimal places as needed.)

**(d)** Does a linear relation exist between
compensation and stock return? Does stock performance appear to
play a role in determining the compensation of a CEO?

The linear correlation coefficient is close to **1, -1, OR
0,** so **NO, A POSTIVE OR A NEGATIVE** linear
relation exists between compensation and stock return. It appears
that stock performance plays **NO, A POSTIVE OR A
NEGATIVE** role in determining the compensation of a
CEO.

Answer #1

a) Stock performance is the explanatory variable here

b)

Points are scattered and no specific relation is found between the variables

c)

d) The correlation coefficient is -0.03 which is almost near to zero. There exist no linear relationship between variables as the correlation coeffiicient is almost near to 0. So it appears that stock performance plays no role in determining the compensation of CEO

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 (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 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 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.
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 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...

please get the right answer!!! thumbs down!!
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 0.2200.
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?
LOADING...
Click the icon to view the compensation and stock performance
data.
LOADING......

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 49 seconds ago

asked 1 minute ago

asked 1 minute ago

asked 1 minute ago

asked 1 minute ago

asked 4 minutes ago

asked 6 minutes ago

asked 7 minutes ago

asked 7 minutes ago

asked 7 minutes ago

asked 13 minutes ago

asked 13 minutes ago