Highest Paid Women

Each year, Fortune Magazine presents rankings of America's leading businesswomen, including lists of

the most powerful, highest paid, youngest, and "movers." In this case study, we discuss Fortune's list of

the highest paid women.

Total compensation includes annualized base salary, discretionary and performance-based bonus payouts,

the grant-date fair value of new stock and option awards, and other compensation. If relevant, other

compensation includes severance payments.

Equilar Inc., an executive compensation research firm in Redwood Shores, California, prepared a chart,

which we found on CNNMoney.com, by looking at companies with more than $1 billion in revenues that

filed proxies by August 15. From that chart, we constructed the following table showing the 25 highest

paid women, based on 2007 total compensation.For each of the four columns of the table, classify the data as either qualitative or quantitative; if

quantitative, further classify it as discrete or continuous. Also identify the variable under consideration in

each case.

b. Use cut-point grouping to organize the compensation data into frequency and relative-frequency

distributions. Use a class width of 5 and a first cut-point of 5.

c. Construct frequency and relative-frequency histograms of the compensation data based on your

grouping in part (b).

d. Identify and interpret the shape of your histograms in part (c).

e. Truncate each compensation to a whole number (i.e., find the greatest integer in each compensation),

and then obtain a stem-and-leaf diagram of the resulting data, using two lines per stem.

f. Round each compensation to a whole number, and then obtain a stem-and-leaf diagram of the resulting

data, using two lines per stem.

g. Which of the stem-and-leaf diagrams in parts (e) and (f ) corresponds to the frequency histogram in

part (c)? Can you explain why?

h. Round each compensation to a whole number, and then obtain a dotplot of the resulting data.