Explain why it does not make sense to find a least-squares regression line for the CEO Performance data from Problem 33 in Section 4.1.

Data from in Problem 33.

The following data represent the total compensation for 12 randomly selected chief executive officers (CEO) and the company’s stock performance in 2017.

(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?

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Company Macerich Co Regency Centers Corp Rockwell Collins Inc Kohls Corp Interpublic Group Of Companies, Inc Microsoft Corp Henry Schein Inc International Flavors & Fragrances Inc Hanesbrands Inc Walgreens Boots Alliance, Inc Cerner Corp M&T Bank Corp Compensation (millions of dollars) Stock Return (%) 12.8 -2.9 5.6 3.6 8.1 11.3 16.9 20 7.2 7.7 9.6 14.7 2.6 4.2 57 71 -11 38 -7.9 32 -0.3 2.8 42 11