00:01
Hello everyone.
00:03
So as for the given data we have to answer a few questions.
00:05
First is one would think that a higher stock return would lead to a high compensation.
00:10
Based on this what would likely be the explanatory variable.
00:13
So explanatory variable will be stock return.
00:21
Coming to part b, we have to draw a scatter diagram of the data using the result from part a to determine the explanatory variable.
00:32
Choose the correct graph below.
00:33
So the scatter plot is as shown on the screen the correct option is option.
00:40
See on xx is we are having stock return and y x is we are having compensation.
00:46
Let us come to part c where we have to determine the linear correlation coefficient between the compensation and stock return.
00:52
So that we will be calculating this table here x is stock return whereas y is compensation that is determine let us define these here.
01:13
X is our stock return while y is our compensation.
01:23
So we are computing here x square y square and xy.
01:26
Also we are computing a total of x y, x, y, x square, and xy...