The file 14 CEO-Compensation includes the total compensation (in $millions) for CEOs of 194 large public companies and the investment return in 2011. (Data extracted from
nytimes.com/2012/06/17/business/executive-pay-still-climbing-despite-a-shareholderdin.html.)
a. Compute the correlation coefficient between compensation and the investment return in 2011.
b. At the 0.05 level of significance, is the correlation between compensation and the investment return in 2011 statistically significant?
c. Write a short summary of your findings in (a) and (b). Do the results surprise you?