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Tutorial 1

1(a) 12 variables, 105 observations.

10th row
salary: 729
Roe:15.1
Sales:2066.1
Finance:0

1(b) 729

1(c) Correlation: 0.107. Positive correlation. The correlations between the two sets of data are equal as the values of
the data are the same. The units the data is in does not change the correlation between the two variables.

1(d) Correlation: -0.0114 Negative correlation

1(e)Mean:0.552381. The value can be used to suggest that more than half of the firms in the dataset have a
negative return on equity, which may mean they are not performing as they should be.

1(f)

Both sets of firms have similar mean salaries (1290.69 for nonperforming vs 1284.234 for performing), non-
performing firms have a slightly higher average salary. Firms which are not being as successful are paying a higher
minimum and maximum salary. We can conclude from the data that non-performing firms are paying higher salaries.
Firms that are performing have a lower variance in salaries payed.
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1(g)

1(h)

1(i)

1(j)

The graphs compare high CEO salaries and low CEO salaries to sales. The low CEO salary graph displays a
slight positive linear relationship which you could draw a line through. Whereas the high CEO salaries
graph shows no linear relationship.