According to Advertising Age's annual salary review, Mark Hurd, the 49-year-old chairman, president, and CEO of Hewlett-Packard Co., received an annual salary of $817,000, a bonus of more than $5 million, and other compensation exceeding $17 million. His total compensation was slightly better than the average CEO total pay of $12.4 million. The following table shows the age and annual salary (in thousands of dollars) for Mark Hurd and 14 other executives who led publicly held companies (Advertising Age, December 5, 2006).

Executive	Title	Company	Age	Salary ($1000s)
Charles Prince	Chmn/CEO	Citigroup	56	1000
Harold McGraw III	CHMN/Pres/CEO	McGraw-Hill Cos	57	1172
James Dimon	Pres/CEO	JP Morgan Chase & Co.	50	1000
K. Rupert Murdoch	Chmn/CEO	News Corp	75	4509
Kenneth D. Lewis	CHMN/Pres/CEO	Bank of America	58	1500
Kenneth I. Chenault	Chmn/CEO	American Express Co.	54	1092
Louis C. Camilleri	Chmn/CEO	Altria Group	51	1663
Mark Hurd	CHMN/Pres/CEO	Hewlett-Packard Co.	49	817
Martin S. Sorrell	CEO	WPP Group	61	1562
Robert L. Nardelli	CHMN/Pres/CEO	Home Depot	57	2164
Samuel J. Palmisano	CHMN/Pres/CEO	IBM Corp	55	1680
65David C. Novak	CHMN/Pres/CEO	Yum Brands	53	1173
Henry R. Silverman	Chmn/CEO	Cendant Corp.	65	3300
Robert C. Wright	Chmn/CEO	NBC Universal	62	2500
Sumner Redstone	CHMN/Pres/CEO	Viacom	82	5807

Required:

(1) Based on the information given in the problem, determine which of the two variables of interest is the independent variable and the dependent variable?

(2) Develop a scatter diagram for the two variables and label which is the predictor variable and which is the response variable?

(3) What does the scatter diagram developed in part (2) indicate about the relationship between the two variables?

(4) Verify your answer in (3) by calculating the correlation coefficient and interpret the results.

(5)Using the Least Squares Method, calculate the regression coefficients and formulate a model that will define the relationship between the two variables.

(6) Interpret the coefficients (slope & intercept) of your model.

(7)Calculate the coefficient of determination and interpret.

(8) Suppose Bill Gustin is the 72-year-old chairman, president, and CEO of a major electronics company.

Predict the annual salary for Bill Gustin.

(9) Suppose YOU are a CEO of a big company 10 years from now, predict your annual salary.