Question

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 14.98 74.48

B 4.61 63.62

C 6.15 148.21

D 1.11 30.35

E 1.54 11.94

F 3.28 29.09

G 11.06 0.64

H 7.77 64.16

I 8.23 50.41

J 4.47 53.19

K 21.39 21.94

L 5.23 33.68

(a) Treating compensation as the explanatory variable, x, use technology to determine the estimates of β0 and β1.

**The estimate of β1 is −0.217.**

(Round to three decimal places as needed.)

**The estimate of beta 0β0 is 50.1**

(Round to one decimal place as needed.)

(b) Assuming that the residuals are normally distributed, test whether a linear relation exists between compensation and stock return at the α=0.01level of significance. What are the null and alternative hypotheses?

**B. H0: β1=0 H1: β1≠0 Your answer is
correct.**

**Compute the test statistic using technology.
-0.10**

(Round to two decimal places as needed.)

Compute the P-value using technology.

**0.919**

(Round to three decimal places as needed.)

State the appropriate conclusion. Choose the correct answer below.

A.

Reject H0. There is sufficient evidence to conclude that a linear relation exists between compensation and stock return.

B.

Reject H0. There is not sufficient evidence to conclude that a linear relation exists between compensation and stock return.

C.

Do not reject H0. There is sufficient evidence to conclude that a linear relation exists between compensation and stock return.

D.

Do not reject H0. There is not sufficient evidence to conclude that a linear relation exists between compensation and stock return.

Answer #1

Part a) and b) are correct.

Now we have to make conclusion.

Here p-value = 0.919 and = 0.01

Decision rule : if p-value , we reject the null hypothesis H0, otherwise we fail to reject H0

Our p-value = 0.919 > 0.01

So we fail to reject the null hypothesis H0 .

Conclusion : Do not reject H0 . There is There is not sufficient evidence to conclude that a linear relation exists between compensation and stock return.

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).
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 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) 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 (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 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.
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 (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 data in the accompanying table represent the heights and
weights of a random sample of professional baseball players.
Complete parts (a) through (c) below.
Player Height_(inches) Weight_(pounds)
Player_1 76 225
Player_2 75 195
Player_3 72 180
Player_4 82 231
Player_5 69 185
Player_6 74 190
Player_7 75 228
Player_8 71 200
Player_9 75 230
(b) Determine the least-squares regression line. Test whether
there is a linear relation between height and weight at the α=0.05
level of significance.
Determine the...

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