Please Assist! The given data represent the total compensation for 10 randomly s

Question

Please Assist!

The given data represent the total compensation for 10 randomly selected CEOs and their company's stock performance in 2009. Analysis of this data reveals a correlation coefficient of r 0.2092. What would be the pre 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? ?Click the icon to view the compensation and stock performance data Click the icon to view a table of critical values for the correlation coefficient. Reference 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.) Critical Values for Correlation Coefficient In 0.997 0.950 0.878 0.811 0.754 0.707 0.666 0.632 0.602 0.576 10 Enter your answer in the answer box and then click Check Answer 12 part remaining Check Answer

Explanation / Answer

The statistical software output for this problem is:

Correlation between Compensation and Stock Return is:
-0.20916641

SInce this correlation is less than critical value, this will not be significant.

Hence,

Predicted stock return for a company whose CEO make $15 million

= Predicted stock return for a company whose CEO make $25 million

= Average of stock return values

= 17.3 %

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