Question

The given data represent the total compensation for 10 randomly selected CEOs and their​ company's stock...

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 values for the correlation coefficient.

What would be the predicted stock return for a company whose CEO made​ $15 million?

%

​(Type an integer or decimal rounded to one decimal place as​ needed.)

Compensation ($ millions)   Stock Return (%)
26.55   5.43
12.89   30.21
19.41   31.87
13.35   79.66
12.12   -7.94
12.35   2.22
26.52   4.08
14.79   10.81
17.46   3.86
14.02   12.25

Critical Values for Correlation Coefficient  
n  
3   0.997
4   0.950
5   0.878
6   0.811
7   0.754
8   0.707
9   0.666
10   0.632
11   0.602
12   0.576
13   0.553
14   0.532
15   0.514
16   0.497
17   0.482
18   0.468
19   0.456
20   0.444
21   0.433
22   0.423
23   0.413
24   0.404
25   0.396
26   0.388
27   0.381
28   0.374
29   0.367
30   0.361
n  

Homework Answers

Answer #1

correlation r='Sxy/(√Sxx*Syy) = -0.2135
0.05 level,two tail test and n-2= 8 df, critical r=0.632

since correlation coefficient absolute value is less than critical value , we can not use regression for prediction

predicted stock return for a company whose CEO made​ $15 million =average y value =17.2 million

predicted stock return for a company whose CEO made​ $25 million =17.2 million

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
please get the right answer!!! thumbs down!! The given data represent the total compensation for 10...
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......
The given data represent the total compensation for 10 randomly selected CEOs and their​ company's stock...
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 = −0.2062. 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 (%) 26.34   5.43 12.93   29.92 19.58   31.86 13.33   79.55 12.55   -8.22 11.54   2.65 26.54  ...
The given data represent the total compensation for 10 randomly selected CEOs and their​ company's stock...
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...
The given data represent the total compensation for 10 randomly selected CEOs and their​ company's stock...
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 =-0.2257 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​ $25 million? Data Compensation ($ millions) Stock Return (%) 25.88 6.34 12.54 29.96 19.66 31.35 13.09 79.73 12.47 -8.23 11.62 3.02 26.71 4.23...
Compensation ​(millions of​ dollars) Stock Return​ (%) 26.81 5.58 12.82 30.26 19.64 31.47 13.14 79.88 12.37...
Compensation ​(millions of​ dollars) Stock Return​ (%) 26.81 5.58 12.82 30.26 19.64 31.47 13.14 79.88 12.37 -8.24 12.07 2.82 25.87 4.39 14.86 10.88 17.16 4.26 14.63 11.98 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 0.2209−0.2209. What would be the predicted stock return for a company whose CEO made​ $25 million?
The accompanying data represent the total compensation for 12 randomly selected chief executive officers​ (CEOs) and...
The accompanying data represent the total compensation for 12 randomly selected chief executive officers​ (CEOs) and the​ company's stock performance. Use the data to complete parts​ (a) through​ (d). LOADING... Click the icon to view the data table. ​(a) Treating compensation as the explanatory​ variable, x, use technology to determine the estimates of beta 0 and beta 1. The estimate of beta 1 is nothing. ​(Round to three decimal places as​ needed.) Enter your answer in the answer box and...
The accompanying data represent the total compensation for 12 randomly selected chief executives officers(CEO) and the...
The accompanying data represent the total compensation for 12 randomly selected chief executives officers(CEO) and the company's stock performance in a recent year Company Compensation($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 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 ($mil)   Stock Return (%) Company A   14.54   75.47 Company B   4.09   64.03 Company C   7.08   142.05 Company D   1.09   32.73 Company E   1.93   10.65 Company F   3.77   30.63 Company G   12.01   0.77 Company H   7.63   69.37 Company I   8.42   58.72 Company J   4.08   55.97 Company K   20.93   24.26 Company L   6.67   32.19 ​(a) One...
Question: The accompanying data represent the total compensation for 12 randomly selected chief executive officers​ (CEO)...
Question: The accompanying data represent the total compensation for 12 randomly selected chief executive officers​ (CEO) and the​ company's stock performance in a recent year. Complete parts​ (a) through​ (d) below. Company          Compensation ($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 executive officers​ (CEO) and...
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...