Fundamentals of Statistics (5th Edition)
5th Edition
ISBN: 9780134508306
Author: Michael Sullivan III
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter 4.1, Problem 31AYU
CEO Performance The following data represent the total compensation for 12 randomly selected chief executive officers (CEO) and the company’s stock performance in 2013.
Company | Compensation (millions of dollars) | Stock Return (%) |
Navistar International | 14.53 | 75.43 |
Aviv REIT | 4.09 | 64.01 |
Groupon | 7.11 | 142.07 |
Inland Real Estate | 1.05 | 32.72 |
Equity Lifestyles Properties | 1.97 | 10.64 |
Tootsie Roll Industries | 3.76 | 30.66 |
Catamaran | 12.06 | 0.77 |
Packaging Corp of America | 7.62 | 69.39 |
Brunswick | 8.47 | 58.69 |
LKQ | 4.04 | 55.93 |
Abbott Laboratories | 20.87 | 24.28 |
TreeHouse Foods | 6.63 | 32.21 |
Data from Chicago Tribune, June 1, 2014 |
- 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?
- b. Draw a
scatter diagram of the data. - c. Determine the linear
correlation coefficient between compensation and stock return. - d. Does a linear relation exist between compensation and stock return? Does stock performance appear to play a role in determining the compensation of a CEO?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
please help me with this
The "Dogs of the Dow" are the stocks listed on the Dow with the highest dividend yield. The following table shows the top 10 stocks of the "Dogs of the Dow" list for 2015, based on their performance the preceding year.
Symbol
Company
Price ($)
Yield
T
AT&T
33.59
5.48%
VZ
Verizon
46.78
4.70%
CVX
Chevron
112.18
3.82%
MCD
McDonald's
93.70
3.63%
PFE
Pfizer
31.15
3.60%
GE
GeneralElectric
25.27
3.48%
MRK
Merck
56.79
3.17%
CAT
Caterpillar
91.53
3.06%
XOM
ExxonMobil
92.45
2.99%
KO
Coca-Cola
42.22
2.89%
You decide to make a small portfolio consisting of a collection of 3 of the top 10 Dogs of the Dow.
(a)
How many portfolios are possible?
__ = portfolios
(b)
How many of these portfolios contain VZ and MCD but neither KO nor XOM?
__ = portfolios
(c)
How many of these portfolios contain at least two stocks with yields above 3.5%?
__ = portfolios
(ATTACHED IS THE IMAGE OF QUESTIONS, ANSWER A, B, AND C)
The "Dogs of the Dow" are the stocks listed on the Dow with the highest dividend yield. The following table shows the top ten stocks of the "Dogs of the Dow" list for 2015, based on their performance the pre
See Example 2.]
Symbol
Company
Price ($)
Yield
AT&T
33.59
5.48%
vz
Verizon
46.78
4.70%
CVX
Chevron
112.18
3.82%
MCD
McDonald's
93.70
3.63%
PFE
Pfizer
31.15
3.60%
GE
General Electric
25.27
3.48%
MRK
Merck
56.79
3.17%
CAT
Caterpillar
91.53
3.06%
хом
ExxonMobil
92.45
2.99%
ко
Coca-Cola
42.22
2.89%
f you selected two of these stocks at random, what is the probability that both the stocks in your selection had yields of 3.75% or more? (Enter your probability as a fraction.)
Chapter 4 Solutions
Fundamentals of Statistics (5th Edition)
Ch. 4.1 - What is the difference between univariate data and...Ch. 4.1 - The _____ variable is the variable whose value can...Ch. 4.1 - A _____ _____ is a graph that shows the relation...Ch. 4.1 - What does it mean to say two variables are...Ch. 4.1 - If r = _____, then a perfect negative linear...Ch. 4.1 - True or False: If the linear correlation...Ch. 4.1 - A _____ variable is a variable that is related to...Ch. 4.1 - True or False: Correlation implies causation.Ch. 4.1 - In Problems 912, determine whether the scatter...Ch. 4.1 - In Problems 912, determine whether the scatter...
Ch. 4.1 - In Problems 912, determine whether the scatter...Ch. 4.1 - In Problems 912, determine whether the scatter...Ch. 4.1 - NW Match the linear correlation coefficient to the...Ch. 4.1 - Match the linear correlation coefficient to the...Ch. 4.1 - Prob. 15AYUCh. 4.1 - Relation between Education and Birthrate? The...Ch. 4.1 - In Problems 1720, (a) draw a scatter diagram of...Ch. 4.1 - In Problems 1720, (a) draw a scatter diagram of...Ch. 4.1 - In Problems 1720, (a) draw a scatter diagram of...Ch. 4.1 - In Problems 1720, (a) draw a scatter diagram of...Ch. 4.1 - Name the Relation, Part I For each of the...Ch. 4.1 - Prob. 22AYUCh. 4.1 - The TIMMS Exam The Trends in International...Ch. 4.1 - Prob. 24AYUCh. 4.1 - NW An Unhealthy Commute The Gallup Organization...Ch. 4.1 - Credit Scores Your Fair Isaacs Corporation (FICO)...Ch. 4.1 - Height versus Head Circumference A pediatrician...Ch. 4.1 - American Black Bears The American black bear...Ch. 4.1 - Weight of a Car versus Miles per Gallon An...Ch. 4.1 - Hurricanes The data in the next column represent...Ch. 4.1 - CEO Performance The following data represent the...Ch. 4.1 - Bear Markets A bear market in the stock market is...Ch. 4.1 - Does Size Matter? Researchers wondered whether the...Ch. 4.1 - Prob. 34AYUCh. 4.1 - Weight of a Car versus Miles per Gallon Suppose...Ch. 4.1 - American Black Bears The website that contained...Ch. 4.1 - Draw Your Data! Consider the four data sets shown...Ch. 4.1 - Predicting Winning Percentage The ultimate goal in...Ch. 4.1 - Prob. 39AYUCh. 4.1 - Lyme Disease versus Drownings Lyme disease is an...Ch. 4.1 - Prob. 41AYUCh. 4.1 - Prob. 42AYUCh. 4.1 - Crime Rate and Cell Phones The linear correlation...Ch. 4.1 - Prob. 44AYUCh. 4.1 - Influential Consider the following set of data: a....Ch. 4.1 - Prob. 46AYUCh. 4.1 - Prob. 47AYUCh. 4.1 - Prob. 48AYUCh. 4.1 - What does it mean to say that the linear...Ch. 4.1 - What does it mean if r = 0?Ch. 4.1 - Prob. 51AYUCh. 4.1 - Prob. 52AYUCh. 4.1 - Explain the difference between correlation and...Ch. 4.1 - Suppose that two variables, x and y, are...Ch. 4.2 - The difference between the observed and predicted...Ch. 4.2 - If the linear correlation between two variables is...Ch. 4.2 - Prob. 3AYUCh. 4.2 - Prob. 4AYUCh. 4.2 - For the data set a. Draw a scatter diagram....Ch. 4.2 - For the data set a. Draw a scatter diagram....Ch. 4.2 - In Problems 712: a. By hand, draw a scatter...Ch. 4.2 - In Problems 712: a. By hand, draw a scatter...Ch. 4.2 - Prob. 9AYUCh. 4.2 - In Problems 712: a. By hand, draw a scatter...Ch. 4.2 - In Problems 712: a. By hand, draw a scatter...Ch. 4.2 - In Problems 712: a. By hand, draw a scatter...Ch. 4.2 - NW Income and Education In Problem 15 from Section...Ch. 4.2 - You Explain It! Study Time and Exam Scores After...Ch. 4.2 - Age Gap at Marriage Is there a relation between...Ch. 4.2 - You Explain It! CO2 and Energy Production The...Ch. 4.2 - NW An Unhealthy Commute (Refer to Problem 25,...Ch. 4.2 - Credit Scores (Refer to Problem 26, Section 4.1.)...Ch. 4.2 - Height versus Head Circumference (Refer to Problem...Ch. 4.2 - Prob. 20AYUCh. 4.2 - Weight of a Car versus Miles per Gallon (Refer to...Ch. 4.2 - Hurricanes (Refer to Problem 30, Section 4.1) The...Ch. 4.2 - Cola Consumption vs. Bone Density Example 5 in...Ch. 4.2 - Attending Class The following data represent the...Ch. 4.2 - CEO Performance (Refer to Problem 31 in Section...Ch. 4.2 - Bear Markets (Refer to Problem 32, Section 4.1) A...Ch. 4.2 - Male vs. Female Drivers (Refer to Problem 34,...Ch. 4.2 - Graduation Rates Go to...Ch. 4.2 - Putting It Together: Housing Prices One of the...Ch. 4.2 - Putting It Together: Smoking and Birth Weight It...Ch. 4.2 - What is a residual? What does it mean when a...Ch. 4.2 - Explain the phrase outside the scope of the model....Ch. 4.2 - Explain what each point on the least-squares...Ch. 4.3 - The _____ _____ _____, R2, measures the proportion...Ch. 4.3 - Total deviation = _____ deviation + _____...Ch. 4.3 - Match each coefficient of determination to a...Ch. 4.3 - NW The Other Old Faithful Perhaps you are familiar...Ch. 4.3 - Concrete As concrete cures, it gains strength. The...Ch. 4.3 - Prob. 7AYUCh. 4.3 - Problems 712 use the results from Problems 2530 in...Ch. 4.3 - Prob. 9AYUCh. 4.3 - Problems 712 use the results from Problems 2530 in...Ch. 4.3 - Problems 712 use the results from Problems 2530 in...Ch. 4.3 - Prob. 12AYUCh. 4.3 - Weight of a Car versus Miles per Gallon Suppose...Ch. 4.3 - American Black Bears Suppose that we find a bear...Ch. 4.3 - Putting It Together: Exam Scores The data below...Ch. 4.3 - Sullivan Survey II Go to...Ch. 4.4 - What is meant by a marginal distribution? What is...Ch. 4.4 - Refer to Table 8. Is constructing a conditional...Ch. 4.4 - Prob. 3AYUCh. 4.4 - Explain the idea behind Simpsons Paradox.Ch. 4.4 - In Problems 5 and 6, a. Construct a frequency...Ch. 4.4 - In Problems 5 and 6, a. Construct a frequency...Ch. 4.4 - Made in America In a recent Harris Poll, a random...Ch. 4.4 - Desirability Traits In a recent Harris Poll, a...Ch. 4.4 - NW Party Affiliation Is there an association...Ch. 4.4 - Prob. 10AYUCh. 4.4 - Health and Happiness The General Social Survey...Ch. 4.4 - Happy in Your Marriage? The General Social Survey...Ch. 4.4 - Prob. 13AYUCh. 4.4 - Treating Kidney Stones Researchers conducted a...Ch. 4.4 - Sullivan Survey II Go to...Ch. 4 - Basketball Spreads In sports betting, Las Vegas...Ch. 4 - Fat and Calories in Cheeseburgers A nutritionist...Ch. 4 - Prob. 3RECh. 4 - Prob. 4RECh. 4 - Prob. 5RECh. 4 - a. Draw a scatter diagram treating x as the...Ch. 4 - Use the results from Problems 2 and 4 to compute...Ch. 4 - Prob. 8RECh. 4 - Prob. 9RECh. 4 - New versus Used Car Satisfaction Are you more...Ch. 4 - Unemployment Rates Recessions are an economic...Ch. 4 - Prob. 12RECh. 4 - Prob. 13RECh. 4 - Prob. 1CTCh. 4 - Use the data from Problem 1. a. Find the...Ch. 4 - Use the results from Problems 1 and 2 to compute...Ch. 4 - The following data represent the speed of a car...Ch. 4 - Prob. 5CTCh. 4 - Prob. 6CTCh. 4 - Consider the following contingency table, which...Ch. 4 - What would you say about a set of quantitative...Ch. 4 - If the slope of a least-squares regression line is...Ch. 4 - What does it mean if a linear correlation...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.Similar questions
- Sales of a particular product for the years 2017 through 2020 have been 46,850, 61,204, 51,632 and 78,068 respectively. What sales would you predict for 2021 using a simple four-year moving average?arrow_forwardHistorical returns. Calculate the arithmetic average return of U.S. Treasury bills, long-term government bonds, and large-company stocks for 1988 to 1997. Which had the highest return? Which had the lowest return? On the left side, click on the Spreadsheet Leaming Aid to see Table 8.1-Year-by-Year Returns, 1950-1999. What is the average return of U.S. Treasury bills for 1988 to 1997? |% (Round to two decimal places.)arrow_forwardTen annual returns are listed in the following table: (Click on the following icon o in order to copy its contents into a spreadsheet.) - 19.3% 16.9% 18.5% - 49.9% 43.1% 1.9% - 16.9% 46.3% 45.3% - 3.2% a. What is the arithmetic average return over the 10-year period? b. What is the geometric average return over the 10-year period? c. If you invested $100 at the beginning, how much would you have at the end?arrow_forward
- Entrepreneur magazine ranks franchises using performance measures such as growth rate, number of locations, startup costs, and financial stability. The number of locations for the top 20 U.S. franchises follow (The World Almanac). No. U.S. Locations Franchise Franchise Hampton Inn No. U.S. Locations 1,825 4,152 Jan-Pro Franchising Intl. Inc. 14,621 ampm Hardee's 1,870 McDonald's 31,628 Pizza Hut Inc. 15,735 7-Eleven Inc. 37,341 Kumon Math & Reading Centers 26,609 Supercuts 2,249 Dunkin' Donuts 9,446 Days Inn 1,902 KFC Corp. 16,517 Jazzercise Inc. 7,504 Vanguard Cleaning Systems Servpro 2,290 1,526 33,899 Anytime Fitness 1,802 Matco Tools 1,731 Subway Denny's Inc. 1,744 Stratus Building Solutions 5,541 Use classes 0 - 4,999, 5,000-9,999, 10,000 14,999, and so forth to answer the following questions. a. Construct a frequency distribution and a percent frequency distribution of the number of U.S. locations for these top-ranked franchises. If your answer is "zero", enter "0". Round your…arrow_forwardonly HANDWRITTEN answer needed ( NOT TYPED)arrow_forwardThe Bayside Fountain Hotel is adjacent to County Coliseum, a 24,000-seat arena that is home tothe city’s professional basketball and ice hockey teams and that hosts a variety of concerts, tradeshows, and conventions throughout the year. The hotel has experienced the following occupancyrates for the past 9 years, since the coliseum opened:Year Occupancy Rate (%)1 832 783 754 815 866 857 898 909 86 Compute an exponential smoothing forecast with a = .20, an adjusted exponential smoothingforecast with a = .20 and B=30 and a linear trend line forecast. Compare the three forecasts,using MAD and average error ( ), and indicate which seems to be most accurate.arrow_forward
- The table shows the annual compensation of 40 randomly chosen CEOS (millions of dollars). Saved 5.12 1.81 17.55 18.07 194.40 24.11 6.06 12.84 24.08 6.56 15.81 87.73 8.63 2.58 2.71 25.37 13.12 4.10 25.99 15.46 5.69 11.02 4.25 37.30 18.31 5.49 6.05 14.04 21.08 8.94 1.74 5.43 6.27 2.78 0.74 8.54 4.81 3.34 1.61 4.50 picture Click here for the Excel Data File (a) Select the correct histogram for the above data. Histogram A Histogram B Histogram 35 Histogram C Histogram 30 35 Histogram 25 30 40 35 20 25 30 15 20 25 15 20 10 15 10 0. 20 40 120 20 40 60 Compensation 120 60 80 180 20 Compensation 100 140 Compensation O Histogram A O Histogram B O Histogram C (b) Describe the shape of the histogram. Type here to search 83% Percent 10 09 08 180 Percent 80 140 Percent 120 180arrow_forwardShow your work please!arrow_forwardThe data table shows the yields for a one-year certificate of deposit (CD) and a five-year CD for 13 banks. Complete parts (a) through (c). One-Year CD Five-Year CD 2.47 3.24 3.47 4.78 2.88 4.61 3.64 4.98 2.81 2.75 3.65 3.87 2.86 2.87 3.75 3.69 2.79 2.67 4.14 3.51 4.24 4.76 4.94 4.89 3.31 3.72 a. Compute the first quartile (Q1), the third quartile (Q3), and the interquartile range for a one-year CD.arrow_forward
- . If a startup churns 5.6% of its customers each month, then what is the average lifetime of a customer in months? 15.9 (rounded) 17.9 (rounded) 19.9 (rounded)arrow_forwardDay traders typically buy and sell stocks (or other investment instruments) during the trading day and sell all investments by the end of the day. The following table shows the closing prices on September 22, 2015, of 12 stocks selected by your broker, Prudence Swift, as well as the change that day. Tech Stocks Close Change AAPL (Apple) $113.40 -1.81 ADBE (Adobe Systems) $84.66 1.34 EBAY (eBay) $25.61 -0.31 MSFT (Microsoft) $3.90 -0.21 S (Sprint) $4.40 0.02 WIFI (Boingo Wireless) $8.51 0.56 Non-Tech Stocks ANF (Abercrombie & Fitch) $21.81 -0.02 в (Воeing) $133.99 -2.03 F (Ford Motor Co.) $13.91 -0.40 GE (General Electric) $25.10 0.01 GIS (General Mills) $57.12 0.33 JNJ (Johnson & Johnson) $93.26 0.13 On the morning of September 22, 2015, Swift advised you to purchase a collection of three tech stocks and two non-tech stocks, all chosen at random from those listed in the table. You were to sell all the stocks at the end of the trading day. (a) How many possible collections are possible?…arrow_forwardThe following information is taken from Johnson & Johnson's annual reports. Its common stock is listed on the New York Stock Exchange, using the symbol JNJ. Johnson & Johnson Domestic Sales International Sales Employees Year ($ million) ($ million) (thousands) 2010 $ 29,437 $ 32,124 114.0 2011 12,907 36,107 117.9 2012 29,830 37,394 127.6 2013 31,910 39,402 128.1 2014 34,782 39,548 126.5 2015 35,687 34,387 127.1 2016 37,811 34,079 126.4 2017 39,863 36,587 134.0 2018 41,884 39,697 135.1 Using the period 2010–12 as the base period, compute a simple index of international sales for each year from 2013 to 2018. (Round your answers to 1 decimal place.)The index (2010–2012 = 100) for selected years is:arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Glencoe Algebra 1, Student Edition, 9780079039897...AlgebraISBN:9780079039897Author:CarterPublisher:McGraw Hill
Glencoe Algebra 1, Student Edition, 9780079039897...
Algebra
ISBN:9780079039897
Author:Carter
Publisher:McGraw Hill
Sampling Methods and Bias with Surveys: Crash Course Statistics #10; Author: CrashCourse;https://www.youtube.com/watch?v=Rf-fIpB4D50;License: Standard YouTube License, CC-BY
Statistics: Sampling Methods; Author: Mathispower4u;https://www.youtube.com/watch?v=s6ApdTvgvOs;License: Standard YouTube License, CC-BY