Question: The given data represent the total compensation for 10 randomly selected CEOs and theircompany's stock performance in 2009. Analysis of this data reveals a correlation
The given data represent the total compensation for 10 randomly selected CEOs and theircompany's stock performance in 2009. Analysis of this data reveals a correlation coefficient of R=0.1926.
Compensation ($ millions)Stock Return (%)
26.055.85
12.9830.08
19.5331.22
13.7479.75
12.54-8.58
12.132.98
25.974.93
15.3610.83
17.613.81
14.0111.65
Critical Values for Correlation Coefficient
n
30.997
40.950
50.878
60.811
70.754
80.707
90.666
100.632
110.602
120.576
130.553
140.532
150.514
160.497
170.482
180.468
190.456
200.444
210.433
220.423
230.413
240.404
250.396
260.388
270.381
280.374
290.367
300.361
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?
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