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Posted: February 14th, 2023
The following table shows the age and annual salary (in thousands
According to Advertising Age’s annual salary review, Mark Hurd, the 49-year-old chairman, president, and CEO of Hewlett-Packard Co., received an annual salary of $817,000, a bonus of more than $5 million, and other compensation exceeding $17 million. His total compensation was slightly better than the average CEO total pay of $12.4 million. The following table shows the age and annual salary (in thousands of dollars) for Mark Hurd and 14 other executives who led publicly held companies. Executive Title Company Age Salary (1000s) Charles Prince,Chmn/CEO,Citigroup,56,1000 Harol McGraw III,Chmn/Pres/CEO,MCGraw-Hill Cos.,57,1172 James Dimon,Pres/CEO,JP Morgan Chase & Co,50,1000 K. Rupert Murdoch, Chmn/CEO,News Corp.,75,4509 Kenneth D. Lewis,Chmn/Pres/CEO,Bank of America,58,1500 Kenneth I. Chenault,Chmn/CEO,American Express Co,54,1092 Louis C. Camilleri,Chmn/CEO, Altria Group,51,1663 Mark V Hurd,Chmn/Pres/CEO,Hewlett-Packard Co,49,817 Martin S. Sorrell,CEO,WPP Group,61,1562 Robert L Nardelli, Chmn/Pres/CEO, Home Depot, 57, 2164 Samuel J Palmisano ,Chmn/Pres/CEO, IBM Corp, 55, 1680 David C Novak, Chmn/Pres/CEO, Yum Brands, 53, 1173 Henry R Silverman, Chmn/CEO, Cendant Corp, 65, 3300 Robert C Wright, Chmn/CEO, NBC Universal, 62, 2500 Sumner Redstone, Exec Chmn/Founder, Viacom, 82, 5807 a)Develop a scatter diagram for these data with the age of the executive as the independent variable. b) What does the scatter diagram developed in part (a) indicate about the relationship between the two variables? c) Develop the least squares estimated regression equation. d) Suppose Bill Gustin is the 72-year-old chairman, president, and CEO of a major electronics company. Predict the annual salary for Bill Gustin.
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