Question: The following data represent the total compensation for 12 randomly selected chief executive officers (CEO) and the company's stock performance in 2013. (a) One would

The following data represent the total compensation for 12 randomly selected chief executive officers (CEO) and the company's stock performance in 2013.

(a) One would think that a higher stock return would lead to a higher compensation. Based on this, what would likely be the explanatory variable?
(b) Draw a scatter diagram of the data.
(c) Determine the linear correlation coefficient between compensation and stock return.
(d) Does a linear relation exist between compensation and stock return? Does stock performance appear to play a role in determining the compensation of a CEO?

Compensation (millions of dollars) Company Stock Return (%) Navistar International 14.53 75.43 Aviv REIT 4.09 64.01 Groupon 7.11 142.07 Inland Real Estate 1.05 32.72 10.64 Equity Lifestyles Properties 1.97 Tootsie Roll Industries 3.76 30.66 0.77 Catamaran 12.06 Packaging Corp of America 7.62 69.39 Brunswick 8.47 58.69 LKQ 4.04 55.93 Abbott Laboratories 20.87 24.28 32.21 TreeHouse Foods 6.63

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