Statistics: Informed Decisions Using Data (4th Edition)

by Sullivan III, Michael

Published by Pearson

ISBN 10: 0321757270

ISBN 13: 978-0-32175-727-2

Chapter 4 - Section 4.1 - Assess Your Understanding - Applying the Concepts - Page 203: 31d

Answer

No, there is no linear relation between compensation and stock return.

Work Step by Step

See the scatter diagram (item b). It looks like Figure 4 (g) on page 194. Notice that, $r=-0.206$ is close to 0.

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