Question Help

The given data represent the total compensation for 10 randomly selected CEOs and their company's stock performance in 2009. Analysis of this data reveals a correlation coefficient of r =0.2137. What would be the predicted stock return for a company whose CEO made $15 million? What would be the predicted stock return for a company whose CEO made $25 million?

Compensation ($ millions) Stock Return (%)

26.49 5.84

12.23 30.06

19.69 32.18

12.97 79.29

12.35 -8.67

11.55 2.21

25.75 4.39

15.22 10.66

17.42 4.22

14.12 11.69

What would be the predicted stock return for a company whose CEO made $15 million?