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has 4 19. CEO Performance (Refer to Problem 31 in Section following data represent the total compensation for 12 randomly selected chief executive officers (CEOs)

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has 4 19. CEO Performance (Refer to Problem 31 in Section following data represent the total compensation for 12 randomly selected chief executive officers (CEOs) and the company's stock performance in 2013. Company Compensation Stock (millions of dollars) Return (%) Navistar International 14.53 75.43 Aviv REIT 4.09 64.01 Groupon 7.11 142.07 Inland Real Estate 1.05 32.72 Equity Lifestyles Properties 1.97 10.64 Tootsie Roll Industries 3.76 30.66 Catamaran 12.06 0.77 Packaging Corp of America 7.62 69.39 Brunswick 8.47 58.69 LKQ 4.04 55.93 Abbott Laboratories 20.87 24.28 Tree House Foods 6.63 32.21 Data from Chicago Tribune, June 1, 2014 (a) Treating compensation as the explanatory variable, x, determine the estimates of Bo and B1. the Significance of the Least-Squares Regression Model 687 (b) Assuming the residuals are normally distributed, test whether a linear relation exists between compensation and stock Age, r HDL Cholesterol, y return at the a = 0.05 level of significance. 38 Age, x HDL Chola

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