?CEO Performance The following data represent the total compensation for 12 randomly selected chief executive officers (CEO) and the company’s stock pe
Chapter 4, Problem 31(choose chapter or problem)
CEO Performance The following data represent the total compensation for 12 randomly selected chief executive officers (CEO) and the company’s stock performance in 2013.
(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?
(b) Draw a scatter diagram of the data.
(c) Determine the linear correlation coefficient between compensation and stock return.
(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?
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