Question
An investigation has been conducted to determine whether there is a relationship between the salary paid to a Chief Executive Officer (CEO) and the productivity
An investigation has been conducted to determine whether there is a relationship between the salary paid to a Chief Executive Officer (CEO) and the productivity of that CEO as measured by the change in profits from the time the CEO was employed.
The scatterplot plots the salary paid (x) against the change in profits (y) of a sample of CEOs. Without doing any calculations and according only to this scatter diagram, a reasonable coefficient of correlation (r) between x and y would be:
r = -1.11 |
r = 2.13 |
r = 0.58 |
r = -0.61 |
The following table contains executive salaries and employee turnover for the Mean Corporation over the last 9 years. By 'executive salaries', the Mean Corporation is referring to the total executive salaries each year. That is, the value of executive salaries each year is the combined value of all annual salaries that are paid to the executives of the Mean Corporation that year. 'Employee turnover' is the number of employees who leave the Mean Corporation per year.
Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 |
Executive salaries ($) | 51,000 | 53,000 | 68,000 | 71,000 | 75,000 | 81,000 | 83,000 | 90,000 | 92,000 |
Employee turnover | 45 | 50 | 55 | 60 | 80 | 65 | 85 | 75 | 90 |
a)Calculate the mean executive salaries (x) and mean employee turnover (y) for the Mean Corporation. Give your answers to 2 decimal places.
x= $
y=employees per year
b)Calculate the standard deviation of executive salaries (sx) and the standard deviation of employee turnover (sy) for the Mean Corporation. Give your answers to 2 decimal places. If you use your answers to parta)in your calculation, use theroundedversions.
sx= $
sy=employees per year
c)Calculate the correlation (r) between the executive salaries and employee turnover for the Mean Corporation. Give your answer to 2 decimal places. If you use your answers to partsa)orb)in your calculation, use theroundedversions.
r =
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