XYZ Pharmaceuticals Recently Announced That the Clinical Trials for a Cancer

question 15

Multiple Choice

XYZ Pharmaceuticals recently announced that the clinical trials for a cancer drug failed to cure the illness.This announcement led to a dramatic decrease in the stock value of the company.The company hired a new CEO two years ago when the clinical trials for this drug had already initiated.Which one of the following is true about the compensation of the CEO of XYZ Pharmaceuticals?

• A)The CEO should receive lower compensation since shareholder returns have been declining.
• B)The CEO was not involved in the decision of the failed initiative;therefore he/she should not receive lower compensation.
• C)There is no simple answer as to what should be the compensation level of this CEO.
• D)The compensation of this CEO depends only on pretax profit margins,so we need more information to decide on the compensation of this CEO.

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Definitions:

Descriptive Statistics

Descriptive statistics comprise statistical procedures that summarize, describe, and analyze a dataset's distribution, central tendency, and variability.

Variables

Elements, traits, or conditions that can change or vary within an experiment or dataset.

Descriptive Statistics

Descriptive statistics consist of methods for summarizing and organizing data, such as measures of central tendency and variability, to describe its main features.

Inferential Statistics

The branch of statistics that focuses on drawing conclusions about a population based on a sample taken from it, usually through hypothesis testing or estimation.