The given data represent the total compensation for 10 randomly selected CEOs and their company's stock performance in 2009.  Analysis  of this datat reveals correlation coefficient of r= -0.2226. 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?   CEO compensation and stock performance: Compensation(millions dollars)/stock return ( Comp) 26.08-----------6.31( stock return) 12.63--------30.18 19.02-----31.88 13.19------80.25 12.55-------(-8.81) 11.81------2.94 26.67-----4.91 14.74----11.19 17.63-----3.93 14.69---12.04

Question

 The given data represent the total compensation for 10 randomly selected CEOs and their company's stock performance in 2009.  Analysis  of this datat reveals correlation coefficient of r= -0.2226.

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?

 

CEO compensation and stock performance:

Compensation(millions dollars)/stock return

( Comp) 26.08-----------6.31( stock return)

12.63--------30.18

19.02-----31.88

13.19------80.25

12.55-------(-8.81)

11.81------2.94

26.67-----4.91

14.74----11.19

17.63-----3.93

14.69---12.04

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