The given data represent the total compensation for 10 randomly selected CEO s a

Question

The given data represent the total compensation for 10 randomly selected CEO s and their company's stock performance in 2009. Analysis of this data reveals a correlation coefficient of r = -0.2080. 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? What would be the predicted stock return for a company whose CEO made $15 million? % (Type an integer or decimal rounded to one decimal place as needed.)

Explanation / Answer

The data would be required to calculate the answers. The answer for both part a and part b would be same. Since the correlation is not significant, we will not predict the stock performance on the basis of earnings CEO made.

The procedure to get solution will be:

--> Open the data in Excel

--> Use Average function to find the average of column named "Stock Returns".

--> This value rounded off to one decimal place will be the answer of both part a) and part b).

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