Question help The given data represent the total compensation for 10 stock retum

Question

Question help The given data represent the total compensation for 10 stock retum for a company whose CEO made $15 milion? What would be the predicted stock retum for EE Click the icon to view the compensation and stock performance data. Click the icon to view a table ofcritcal values for the correlation coefficent randomiy selected CEOs and their company's stock perfomance in 2008 Analysis of this data revesls a oomelation coefficient of-02180 what would be the predcted company whose CEO made 525 milion? What would be the predicted stock retum for a company whose CEO made $15million? %(Type an integer or decimal rounded to one decimal place as needed)

Explanation / Answer

Here the linear regression line equation is

y^ = -1.008x + 34.39

So if x = $ 15 million

Predicted stock return = -1.008 * 15 + 34.39 = 19.28% or 19.3%

if x = $ 25 million

Predicted stock return = -1.008 * 25 + 34.39 = 9.20% or 9.2%

Here n = 10 so criticall correlation coefficient rcritical = 0.632

sohere ,

l r l < rcriitcal so we can say that regression is not significant here.

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