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There has been a lot of discussion lately surrounding the levels and structure of executive compensation. It is well documented that in general, compensation received by senior executives has risen steeply in recent years. The accompanying table lists a portion of total compensation of the top 10 CEOs in four industry classifications: Manufacturing (technology); Manufacturing (other); Services (financial); Services (other). Total compensation for 2006 is measured in $ millions; the full data set is on the text website, labeled Compensation by Industry.
Top Executive Compensation (in $ millions), 2006
Manufacturing (Technology)
Manufacturing (Other)
Services (Financial)
Services (Other)
39.82
64.63
91.38
24.02
32.85
60.73
48.13
21.51
....
24.08
30.80
25.75
13.04
In a report, use the sample information to:
1. Calculate and interpret relevant summary measures for executive compensation in these four industries.
2. Explain why the one-way ANOVA F test for comparing more than two means may be inappropriate in this case.
3. At the 5% significance level, use the Kruskal-Wallis test to determine whether total executive compensation varies across classifications.
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