(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?   A.Stock return   B.Compensation   ​(c) Determine the linear correlation coefficient between compensation and stock return.   r=____? ​(Round to three decimal places as​ needed.)

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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 a recent year. Complete parts​ (a) through​ (d) below.

​(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?
 
A.Stock return
 
B.Compensation
 
​(c) Determine the linear correlation coefficient between compensation and stock return.
 
r=____?
​(Round to three decimal places as​ needed.)
 
 
Compensation Stock
(Smil)
Company
Return (%)
Company A
Company B
Company C
Company D
Company E
Company F
Company G
Company H
Company I
Company J
Company K
Company L
14.53
75.45
4.11
63.97
7.06
142.08
1.04
32.68
1.95
10.63
3.76
30.63
12.00
0.77
7.59
69.44
8.41
58.69
4.03
55.95
20.94
24.33
6.62
32.18
Transcribed Image Text:Compensation Stock (Smil) Company Return (%) Company A Company B Company C Company D Company E Company F Company G Company H Company I Company J Company K Company L 14.53 75.45 4.11 63.97 7.06 142.08 1.04 32.68 1.95 10.63 3.76 30.63 12.00 0.77 7.59 69.44 8.41 58.69 4.03 55.95 20.94 24.33 6.62 32.18
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