Complete chapter 2 problems 40 and 44 (all letters) from page 78 at the end of the chapter. Refer to the associated files, P02_30.xlsx for problem 40, and P02_44.xlsx for problem 44
40. The Wall Street Journal CEO Compensation Study
analyzed CEO pay from many U.S. companies with
fiscal year 2008 revenue of at least $5 billion that filed
their proxy statements between October 2008 and
March 2009. The data are in the file P02_30.xlsx.
(Note: This data set is a somewhat different CEO
compensation data set from the one used as an
example in the next chapter.)
a. Create histograms to gain a clearer understanding
of the distributions of annual base salaries and
bonuses earned by the surveyed CEOs in fiscal
2008. How would you characterize these
b. Find the annual salary below which 75% of all
given CEO salaries fall.
c. Find the annual bonus above which 55% of all
given CEO bonuses fall.
d. Determine the range of the middle 50% of all
given total direct compensation figures. For the
50% of the executives that do not fall into this
middle 50% range, is there more variability in
total direct compensation to the right than to the
44. The file P02_44.xlsx contains annual data on the
percentage of Americans under the age of 18 living
below the poverty level.
a. In which years of the sample has the poverty rate
for American children exceeded the rate that
defines the third quartile of these data?
b. In which years of the sample has the poverty rate
for American children fallen below the rate that
defines the first quartile of these data?
c. What is the typical poverty rate for American
children during this period?
d. Create and interpret a time series graph for these
data. How successful have Americans been
recently in their efforts to win “the war against
poverty” for the nation’s children?
e. Given that this data set is a time series, discuss
whether the measures requested in parts a-c are
very meaningful at the current time.