d. Fit the regression models, CEO Pay vs Sales and Log CEO Pay vs Log Sales,...

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d. Fit the regression models, CEO Pay vs Sales and Log CEO Pay vs Log Sales, including the Normal Probability Plots of the Residuals and the Residuals plots. What do these plots tell you about the two models? e. XYZ had 2021 sales of $5 billion. They wish to set their CEO Pay based on the one of the regression models above. For each model, calculate the projected CEO Pay based on sales of $5 billion. f. More specifically, XYZ wants their CEO Pay to be within the 95% confidence interval for average CEO Pay for public companies with $5 billion in sales. Given this, which of the models should they use to set the CEO Pay. (Consider the residual plots and the prediction output on the following page.) Briefly explain your answer. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 A B Sales ($Mil.) CEO Pay ($000) 150 150 170 200 200 250 300 400 500 800 900 1000 1000 2000 2000 15 16 17 18 19 20 21 22 23 24 25 26 27 28 20 3000 5000 7000 8000 10000 10000 15000 20000 40000 50000 80000 320 500 210 300 600 400 500 700 500 1000 800 600 1300 800 1200 1400 1000 2800 2000 1200 3300 2000 2400 2100 7000 5000 C D E d. Fit the regression models, CEO Pay vs Sales and Log CEO Pay vs Log Sales, including the Normal Probability Plots of the Residuals and the Residuals plots. What do these plots tell you about the two models? e. XYZ had 2021 sales of $5 billion. They wish to set their CEO Pay based on the one of the regression models above. For each model, calculate the projected CEO Pay based on sales of $5 billion. f. More specifically, XYZ wants their CEO Pay to be within the 95% confidence interval for average CEO Pay for public companies with $5 billion in sales. Given this, which of the models should they use to set the CEO Pay. (Consider the residual plots and the prediction output on the following page.) Briefly explain your answer. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 A B Sales ($Mil.) CEO Pay ($000) 150 150 170 200 200 250 300 400 500 800 900 1000 1000 2000 2000 15 16 17 18 19 20 21 22 23 24 25 26 27 28 20 3000 5000 7000 8000 10000 10000 15000 20000 40000 50000 80000 320 500 210 300 600 400 500 700 500 1000 800 600 1300 800 1200 1400 1000 2800 2000 1200 3300 2000 2400 2100 7000 5000 C D E