requalsnegative 0.265
(Round to three decimal places as needed.)
Part 4
(d) Does a linear relation exist between compensation and stock return? Does the explanatory variable appear to play a role in determining the response variable?
The linear correlation coefficient is close to
â–¼
0 ,
plus 1 ,
negative 1 ,
so
â–¼
no
a negative
a positive
linear relation exists between the company's stock performance and their CEO's compensation.
â–¼
Stock performance
The compensation of a CEO
â–¼
does appear
does not appear
to play a role in determining
â–¼
stock performance.
the compensation of a CEO.