Question: 3 - ( 2 5 pts . ) The Excel Midterm Data File in BB includes the total compensation ( in $millions ) of CEO

3-(25 pts.) The Excel Midterm Data File in BB includes the total compensation (in $millions) of CEOs
of 170 large public companies and the investment returns in 2012.
a- Using Excel Data Analysis, find the descriptive measures of the two data sets and describe the
shape of the two data sets based on comparison of Mean and Median.
b- Find the Coefficient of Variation for the two data sets and determine which data set has higher
variability per unit of the mean.
c- Sort the data set based on Compensation and return separately (2 sorts) and identify top 5
corporations with highest return and highest compensations.
d- Find the histogram of the two data sets. For Total Compensation use Bins (5,10,15,...,50) and for
Return use Bins (-50,-40,...,140,150). Describe the shapes based on histograms.
e- Find the ratio of Return/Total Comp. in a new column. Based on this ratio, list top 5
corporations with highest ratio and 5 with lowest ratios. List 3 companies that you would invest
in.
f- Construct scatter plot of Compensation (Y) vs. Return (X). Find best fitted linear line and R2. Is
the corporate return a good indicator of CEO compensation? Explain.

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