Answer Happy

(c) Use Excel to draw a scatter-plot of the CEO compensation and sales revenue variables. The CEO compensation should be on the y-axis. Show the trend line and the regression equation on the graph. What is the likely relationship between the two variables and does this confirm your expectations in (b)? (5 marks) (d) Estimate the simple regression equation showing how a CEO's compensation is determined by the sales revenue of the company. Interpret this equation and comment its significance. Make . sure to paste your Excel outputs below. (6 marks) on

Calibri (Body) 11 y Α' Α' Paste B 1 U v a. Av A35 X fx C (in $000) A B с D 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Compensation Clin $000) 397.5 442.5 444.4 448.1 453.8 459.4 474.4 491.3 508.1 534.4 616.9 637.5 661.9 720.0 759.4 770.6 855.0 896.3 984.4 1057.5 254.4 283.2 284.4 286.8 290.4 294.0 303.6 314.4 325.2 342.0 Sales Revenue Rlin Sm) 87.5 68.0 123.8 85.0 132.0 94.0 151.8 123.0 187.8 172.5 343.0 350.3 407.3 554.3 654.0 750.3 1138.8 1094.0 2005.3 1828.8 56.0 43.5 79.2 54.4 84.5 60.2 97.1 78.7 120.2 110.4 Number of Employees E (#FTE) 1162.5 731.3 1631.3 918.8 1739.1 1012.5 1992.2 1335.9 1637.5 1253.1 2959.4 2578.1 3003.1 4740.6 5575.0 5587.5 8540.6 9240.6 13660.3 13770.0 502.2 315.9 704.7 396.9 751.3 437.4 860.6 577.1 1061.1 812.0 Capital Investment KI (in Sm) 18.90 6.84 26.82 9.00 28.62 10.26 32.94 14.40 40.68 22.14 74.52 54.54 66.06 120.78 142.56 143.64 244.26 238.86 501.12 399.96 13.23 4.79 18.77 6.30 20.03 7.18 23.06 10.08 28.48 15.50 22 23 24 25 26 27 28 29 30 31 32 33 34