According to Advertising Age's annual salary review, Mark Hurd, the 49-year-old chairman, president, and CEO of Hewlett-Packard

Question:

According to Advertising Age's annual salary review, Mark Hurd, the 49-year-old chairman, president, and CEO of Hewlett-Packard Co., received an annual salary of $817,000, a bonus of more than $5 million, and other compensation exceeding $17 million. His total compensation was slightly better than the average CEO total pay of $12.4 million. The following table shows the age and annual salary (in thousands of dollars) for Mark Hurd and 14 other executives who led publicly held companies (Advertising Age, December 5, 2006).

a. Develop a scatter diagram for these data with the age of the executive as the independent variable.
b. What does the scatter diagram developed in part (a) indicate about the relationship between the two variables?
c. Develop the least squares estimated regression equation.
d. Suppose Bill Gustin is the 72-year-old chairman, president, and CEO of a major electronics company. Predict the annual salary for Bill Gustin.