Question: The Excel Midterm Data File in BB includes the total compensation (in $millions) of CEO's of 170 large public companies and the investment returns in
The Excel Midterm Data File in BB includes the total compensation (in $millions) of CEO's of 170 large public companies and the investment returns in 2012.
- Using Excel Data Analysis, find the descriptive measures of the two data sets and describe the shape of the two data sets based on comparison of Mean and Median.
- Find the Coefficient of Variation for the two data sets and determine which set has higher variability per unit of the mean.
- Sort the data set based on Compensation and return separately (2 sorts) and identify top 5 corporations with highest return and highest compensations.
- Find the histogram of the two sets. For Total Compensation use Bins (5,10,15, ...,50) and for Return use Bins (-40, -30 ,.... , 99, 100). Describe the shapes based on histograms.
- Find the ratio of "Return/Total Comp." in a new column. Based on this ratio, list top 5 corporations with highest ratio and 5 with lowest ratios.List 3 companies that you would invest in.
- Construct scatter plot of Compensation (X) vs. Return (Y). Find best fitted linear line and R2. Is CEO compensation a good indicator of corporate performance? Explain.
| Company | Compensation ($millions) | Return in 2012 (%) |
| Berkshire Hathaway | 15.4 | -36 |
| Whole Foods Market | 7.2 | -35 |
| Cincinnati Financial | 5.3 | -29 |
| M&T Bank | 6.6 | -28 |
| Kimco Realty | 9 | -25 |
| People's United Financial | 8.4 | -20 |
| Fastenal | 9.5 | -19 |
| O'Reilly Automotive | 20.5 | -16 |
| TECO Energy | 6.9 | -15 |
| AGL Resources | 9.7 | -12 |
| MeadWestvaco | 9.2 | -11 |
| Sigma-Aldrich | 4.7 | -10 |
| FLIR Systems | 8.1 | -10 |
| Apartment Investment and Management | 10 | -10 |
| Genuine Parts | 8.6 | -9 |
| C.H. Robinson Worldwide | 4.2 | -8 |
| Intuitive Surgical | 6 | -8 |
| Total System Services | 5 | -7 |
| Helmerich & Payne | 7 | -7 |
| F5 Networks | 10 | -6 |
| Newfield Exploration | 10 | -6 |
| CenterPoint Energy | 5.3 | -4 |
| Ryder System | 5.5 | -4 |
| Gannett | 16 | -4 |
| Kellogg | 8.4 | -3 |
| Bemis | 13.4 | -3 |
| First Horizon National | 5.8 | -2 |
| Ameren | 10.1 | -2 |
| Eastman Chemical | 3.7 | -1 |
| International Game Technology | 4.3 | -1 |
| McCormick & Company | 11.5 | 0 |
| PNC Financial Services Group | 8.3 | 1 |
| Carnival | 8.2 | 2 |
| Weyerhaeuser | 11.7 | 2 |
| Joy Global | 12.7 | 2 |
| St. Jude Medical | 7.1 | 3 |
| Huntington Bancshares | 7.4 | 3 |
| Sempra Energy | 15 | 3 |
| Moody's | 6.3 | 4 |
| Baker Hughes | 10.7 | 4 |
| Spectra Energy | 12 | 4 |
| MetroPCS Communications | 7.1 | 5 |
| American Electric Power | 20.4 | 5 |
| AmerisourceBergen | 21.1 | 5 |
| PACCAR | 5 | 6 |
| Allegheny Technologies | 8.7 | 6 |
| Comerica | 12.6 | 6 |
| Northern Trust | 15.4 | 6 |
| Rowan | 4.9 | 7 |
| NRG Energy | 13 | 7 |
| FMC | 18 | 7 |
| DTE Energy | 21.6 | 7 |
| Avery Dennison | 6.7 | 8 |
| Cabot Oil & Gas | 13.2 | 8 |
| Snap-on | 3.8 | 9 |
| Beam | 8.7 | 9 |
| C.R. Bard | 8.7 | 9 |
| Tenet Healthcare | 9.1 | 9 |
| Dominion Resources | 13.1 | 9 |
| International Flavors & Fragrances | 4.5 | 10 |
| Duke Energy | 8.5 | 10 |
| Humana | 9.7 | 10 |
| Public Service Enterprise Group | 12.7 | 10 |
| T. Rowe Price Group | 11.6 | 11 |
| W.W. Grainger | 3.8 | 12 |
| Hershey | 5 | 12 |
| United States Steel | 10.7 | 12 |
| BB&T | 11.8 | 12 |
| SunTrust Banks | 13.8 | 13 |
| Reynolds American | 5.7 | 14 |
| Edison International | 11.8 | 14 |
| EQT | 5.7 | 15 |
| Ecolab | 7 | 15 |
| Fifth Third Bancorp | 7.8 | 15 |
| Newmont Mining | 9.5 | 15 |
| Wisconsin Energy | 11.6 | 15 |
| McGraw-Hill | 17.1 | 15 |
| Ball | 21.8 | 15 |
| Applied Materials | 8.4 | 17 |
| Fluor | 16.6 | 17 |
| XL Group | 17.9 | 17 |
| Peabody Energy | 21 | 17 |
| Noble | 5.1 | 18 |
| Norfolk Southern | 9.3 | 18 |
| Progressive | 11.3 | 18 |
| TE Connectivity | 4.6 | 19 |
| PerkinElmer | 6.3 | 19 |
| Discover Financial Services | 6.7 | 19 |
| AES | 8.5 | 19 |
| CareFusion | 8.6 | 19 |
| Hess | 10.6 | 19 |
| Agilent Technologies | 23.8 | 19 |
| VF | 25 | 19 |
| U.S. Bancorp | 7.2 | 20 |
| Coca-Cola Enterprises | 16.3 | 20 |
| Motorola Solutions | 18.5 | 20 |
| Life Technologies | 8 | 21 |
| Harley-Davidson | 10.1 | 21 |
| Teradata | 10.2 | 21 |
| Covidien | 20.5 | 21 |
| Kimberly-Clark | 4.7 | 22 |
| United Parcel Service | 8.9 | 22 |
| Stanley Black & Decker | 10.3 | 22 |
| Sherwin-Williams | 28 | 22 |
| Tesoro | 7.1 | 23 |
| L-3 Communications Holdings | 3.3 | 24 |
| Textron | 5.7 | 24 |
| Corning | 8.8 | 24 |
| Chubb | 9.1 | 24 |
| Dover | 9.8 | 24 |
| Alcoa | 9.1 | 25 |
| Equifax | 12 | 25 |
| BorgWarner | 7.9 | 26 |
| HCP | 10.2 | 26 |
| Praxair | 10.3 | 26 |
| NYSE Euronext | 12 | 26 |
| Adobe Systems | 12.3 | 26 |
| Delphi Automotive | 0.5 | 27 |
| Aflac | 7.6 | 27 |
| Franklin Resources | 10.3 | 27 |
| Apple | 12.8 | 27 |
| Marathon Petroleum | 19.3 | 27 |
| Valero Energy | 10.3 | 28 |
| PepsiCo | 18.5 | 28 |
| E.I. du Pont de Nemours | 3 | 29 |
| Analog Devices | 6.7 | 29 |
| Cigna | 7.2 | 29 |
| Bank of New York Mellon | 8.2 | 29 |
| Whirlpool | 9.4 | 29 |
| Marathon Oil | 16.1 | 29 |
| Lennar | 20.7 | 30 |
| Texas Instruments | 7.9 | 31 |
| MetLife | 12.3 | 32 |
| Goodyear Tire & Rubber | 12.8 | 32 |
| PPG Industries | 25 | 32 |
| Verizon Communications | 2.1 | 34 |
| Pentair | 6.1 | 35 |
| Schlumberger | 11.3 | 35 |
| Gilead Sciences | 7.6 | 37 |
| Hewlett-Packard | 10.3 | 37 |
| IBM | 22.6 | 37 |
| Bristol-Myers Squibb | 16 | 38 |
| Baxter International | 23.9 | 39 |
| Ameriprise Financial | 5.5 | 41 |
| Honeywell International | 35 | 41 |
| EMC | 11.7 | 42 |
| Deere | 5.2 | 47 |
| DirecTV | 38.9 | 48 |
| General Dynamics | 45 | 48 |
| Pfizer | 1.3 | 50 |
| Eaton | 14.7 | 50 |
| Wells Fargo | 6.8 | 51 |
| Allergan | 6.4 | 52 |
| Occidental Petroleum | 8.1 | 58 |
| General Electric | 7.9 | 59 |
| Qualcomm | 9.8 | 60 |
| AT&T | 8.6 | 61 |
| Boeing | 12.5 | 65 |
| Coca-Cola | 13.5 | 65 |
| United Technologies | 12.4 | 73 |
| Capital One Financial | 39 | 73 |
| Lockheed Martin | 11 | 74 |
| Tyco International | 9.9 | 76 |
| Abbott Laboratories | 12.3 | 76 |
| Prologis | 5.9 | 77 |
| American Express | 12.2 | 78 |
| Viacom | 15.3 | 79 |
| Starbucks | 11.2 | 90 |
| Walt Disney | 12.9 | 95 |
| eBay | 13 | 100 |
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