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 estimates of β0 and β1.
A) The estimate of β1 = ___? (Round to three decimal places as needed.)
Determine the estimate oF β0 = ___ (rounding to one decimal place.)
B) Assuming that the residuals are normally distributed, test whether a linear relation exists between compensation and stock return at the α =0.05 level of significance.
C) While either technology or the formula can be used to find the t-test statistic for the slope, in this problem, use technology. Determine the test statistic, rounding to two decimal places.
t0 = ___?
Review the technology output from the previous step to determine the P-value, rounding to three decimal places.
The P-value for this test is: P= ___?
D) Assuming the residuals are normally distributed, construct a 95% confidence interval for the slope of the true least-squares regression line.
Lower bound = ____?
Upper bound = ____?
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