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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
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