The accompanying data represent the total compensation for 12 randomly selected chief executive officers (CEO) and the company's stock performance in 2017. Complete parts (a) through (d) below. Click the icon to view the CEO data. (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? Compensation Stock return (b) Draw a scatter diagram of the data. Choose the correct graph below. OA. 70- 30 CEO Pay (millions) Q ✔ O B. (Round to three decimal places as needed.) (c) Determine the linear correlation coefficient between compensation and stock return. 70 Stock Return (%) Q O C. 30 CEO Pay (millions) D. 30- L Stock Return (%)

Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter7: Integration
Section7.CR: Chapter 7 Review
Problem 88CR
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The accompanying data represent the total compensation for 12 randomly selected chief executive officers (CEO) and the company's stock performance in 2017. Complete parts (a) through (d) below.
Click the icon to view the CEO data.
(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?
Compensation
Stock return
(b) Draw a scatter diagram of the data. Choose the correct graph below.
r=
A.
Stock Return (%)
0
30
CEO Pay (millions)
B.
(c) Determine the linear correlation coefficient between compensation and stock return.
(Round to three decimal places as needed.)
-9
Stock Return (%)
70
0
30
CEO Pay (millions)
U
-9
70
Stock Return (%)
CEO Pay (millions)
Transcribed Image Text:The accompanying data represent the total compensation for 12 randomly selected chief executive officers (CEO) and the company's stock performance in 2017. Complete parts (a) through (d) below. Click the icon to view the CEO data. (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? Compensation Stock return (b) Draw a scatter diagram of the data. Choose the correct graph below. r= A. Stock Return (%) 0 30 CEO Pay (millions) B. (c) Determine the linear correlation coefficient between compensation and stock return. (Round to three decimal places as needed.) -9 Stock Return (%) 70 0 30 CEO Pay (millions) U -9 70 Stock Return (%) CEO Pay (millions)
CEO Data
Company
HOLOGIC INC
HUNT J B TRANSPORT SERVICES INC
HALLIBURTON CO
LOWES COMPANIES INC
COLGATE PALMOLIVE CO
ONEOK INC
GENERAL MILLS INC
UNITED RENTALS INC
PARKER HANNIFIN CORP
ARCONIC INC.
AES CORP
PERRIGO CO PLC
Print
CEO Pay
(millions)
11.2
0.9
23.1
11.2
15.3
5.6
9.2
12.8
15.3
4.7
9.4
8.3
Done
Return
(%)
- 5.5
20
- 8.3
46
18
-2.1
- 6.8
63
51
48
- 2.7
5.6
I
X
Transcribed Image Text:CEO Data Company HOLOGIC INC HUNT J B TRANSPORT SERVICES INC HALLIBURTON CO LOWES COMPANIES INC COLGATE PALMOLIVE CO ONEOK INC GENERAL MILLS INC UNITED RENTALS INC PARKER HANNIFIN CORP ARCONIC INC. AES CORP PERRIGO CO PLC Print CEO Pay (millions) 11.2 0.9 23.1 11.2 15.3 5.6 9.2 12.8 15.3 4.7 9.4 8.3 Done Return (%) - 5.5 20 - 8.3 46 18 -2.1 - 6.8 63 51 48 - 2.7 5.6 I X
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