The data on the following page represent the total compensation for 10 randomly selected chief executive officers (CEO) and the company’s stock performance in 2009.
(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?

  • CreatedApril 27, 2015
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