BUAD 310 Case 1 Executive Summary
As being a future CEO of Trojan Worldwide, I am interested in the average YearsCEO and average compensation of the 750 highest paid CEOs. I contact an exclusive CEO placement service company in getting the information that I am looking for. The CEO placement service company provides me a sample of 55 CEOs with some important information including average compensation and YearsCEO. I study and analyze the information with statistics. The statistical results give me important insights in the CEOs compensation in the current market, as well as the relationship between average compensation and some other external factors.
Here are some key points that I enumerate in my study:
1. Descriptive statistics of sample (N=55):
Regarding to YearsCEO, the sample mean is 7.509 years, the sample median is 4.000 years, the mode for the sample is 1 year, and the trimmed mean for the sample is 6.592 years. The range of the sample is 32 years with a minimum of 1.000 year and a maximum of 33.000 years, Q1 is 2.000 years, Q3 is 11.000 years, the standard deviation of the sample is 7.351 years, and the variance of the sample is 54.032 years. Regarding to average compensation, the sample mean is $2009204, the median of the sample is $1228170, and the trimmed mean of the sample is $1763599. The range of the sample is $970300 with a minimum of $397000 and a maximum of $101000000, Q1 is $678569, Q3 is $2626950, the variance of the sample is $3.68936E+12, and the standard deviation of the sample is $1920773.
2. It is apparent that extreme outliers in sample are affecting the study. When the entire sample (N=55) is used for calculation, the CEO placement service’s claim saying that the average compensation of a CEO placed by their services is more than 1.5 million dollars is valid. However, when the extreme outliers are removed (N=51), the claim becomes invalid and the conclusion changes to “the average compensation of a CEO is smaller or equal to 1.5... [continues]
As being a future CEO of Trojan Worldwide, I am interested in the average YearsCEO and average compensation of the 750 highest paid CEOs. I contact an exclusive CEO placement service company in getting the information that I am looking for. The CEO placement service company provides me a sample of 55 CEOs with some important information including average compensation and YearsCEO. I study and analyze the information with statistics. The statistical results give me important insights in the CEOs compensation in the current market, as well as the relationship between average compensation and some other external factors.
Here are some key points that I enumerate in my study:
1. Descriptive statistics of sample (N=55):
Regarding to YearsCEO, the sample mean is 7.509 years, the sample median is 4.000 years, the mode for the sample is 1 year, and the trimmed mean for the sample is 6.592 years. The range of the sample is 32 years with a minimum of 1.000 year and a maximum of 33.000 years, Q1 is 2.000 years, Q3 is 11.000 years, the standard deviation of the sample is 7.351 years, and the variance of the sample is 54.032 years. Regarding to average compensation, the sample mean is $2009204, the median of the sample is $1228170, and the trimmed mean of the sample is $1763599. The range of the sample is $970300 with a minimum of $397000 and a maximum of $101000000, Q1 is $678569, Q3 is $2626950, the variance of the sample is $3.68936E+12, and the standard deviation of the sample is $1920773.
2. It is apparent that extreme outliers in sample are affecting the study. When the entire sample (N=55) is used for calculation, the CEO placement service’s claim saying that the average compensation of a CEO placed by their services is more than 1.5 million dollars is valid. However, when the extreme outliers are removed (N=51), the claim becomes invalid and the conclusion changes to “the average compensation of a CEO is smaller or equal to 1.5... [continues]
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