Question: d ) Does a linear relation exist between compensation and stock return? Does the explanatory variable appear to play a role in determining the response

d) Does a linear relation exist between compensation and stock return? Does the explanatory variable appear to play a role in determining the response variable?
The linear correlation coefficient is close to
plus 1 comma+1,
so
a positive
linear relation exists between the company's stock performance and their CEO's compensation.
The compensation of a CEO
does appear
to play a role in determining
stock performance.

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