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Analysis of data reveals a correlation coefficient

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Reference no: EM132086913

The below data represents 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 =negative -0.1972. How would I determine the predicted stock return for a company whose CEO made? $15 million and what would be the predicted stock return for a company whose CEO made? $25 million?

Compensation Stock

(millions $) Return (%)

26.14 6.28

12.89 30.29

19.87 31.45

12.97 79.73

12.15 -8.84

11.54 2.49

25.99 4.77

15.26 10.72

17.17 4.09

13.88 12.25

Reference no: EM132086913

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