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 =-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 15.01 10.62 17.86 4.34 14.74 12.08

Critical values

 Critical Values for Correlation Coefficient n 3 0.997 4 0.95 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

This the answer I need help with-

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.)

 correlation r='Sxy/(√Sxx*Syy) = -0.226

since correlation coefficient absolute value is not greater than critical value of 0.632 ; we can not use regression for prediction

predicted stock return for a company whose CEO made​ \$15 million =average of y values =17.3

predicted stock return for a company whose CEO made​ \$25 million =average of y values =17.3