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    Question about Linear Correlation

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    Do you think there is a correlation between CEO salaries and the degree of success of a company? If you were to take a sample of companies with comparable size, market capitalization, and product category, and plot CEO salaries against the net profit of their respective companies, do you expect to find a linear correlation between the two?

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    No, I do not think that the CEO compensation is correlated with the success of the company. CEO compensation is based on a number of factors and not just success of the company as measured by net profits. Some people argue that CEOs get paid a lot of money ...

    Solution Summary

    The solution answers a question about linear correlation. The concepts are very well explained and easy to understand. The solution can be followed very easily by anyone who has some understanding of the concepts beforehand. Overall, an excellent response to the question.