C3E: QUANTITATIVE PRINCIPLES IN COMPENSATION MANAGEMENT |REAL | Questions with 100% Correct Answers | Verified | Latest Update 2024

C3E: QUANTITATIVE PRINCIPLES IN COMPENSATION MANAGEMENT |REAL | Questions with 100% Correct Answers | Verified | Latest Update 2024 Why do compensation professionals collect & use data? (A) To support personal agendas (B) To respond to stock price volatility (C) To improve changes of making sound decisions (D) To replace the need for modeling - ANSWER (C) To improve changes of making sound decisions A true, absolute zero exists for which level of measurement? (A) Nominal (B) Ordinal (C) Interval (D) Ratio - ANSWER (D) Ratio Salary is an example of which level of measurement? (A) Nominal (B) Ordinal (C) Interval (D) Ratio - ANSWER (D) Ratio In order to satisfy ordinal level data requirements, you must be able to do which of the following? (A) Have a true zero (B) Have a constant interval from point to point (C) Be able to meaningfully arrange the data in rank order (D) Be able to establish ratios - ANSWER (C) Be able to meaningfully arrange the data in rank order Rating employee performance on a five-point scale is most likely an example of which level of measurement? (A) Nominal (B) Ordinal (C) Interval (D) Ratio - ANSWER (B) Ordinal You spent 30% of your budget on merit increases three years ago, 35% two years ago, and 40% last year. When was the most money spent on merit increases? (A) Three years ago (B) Two years ago (C) Last year (D) It cannot be determined based upon the information given. - ANSWER (D) It cannot be determined based upon the information given. (depends on how much the budget was) What is the individual compa-ratio for an employee whose salary is 25,000 per year when the midpoint of the salary structure is 30,000? (A) .17 (B) .83 (C) 1.20 (D) .80 - ANSWER (B) .83 If you earn 50,000 per year and your co-worker in the same job earns 60,000, what percent adjustment do you need to equal your co-worker? (A) 18% (B) 20% (C) 10% (D) 80% - ANSWER (B) 20% You have obtained a set of market data that show you senior MIS manager has a market average of 72,000. If you have a 50% range spread, what would the new minimum and maximum be if the new midpoint is 72,000? (A) 54,000; 90,000 (B) 57,600; 86,400 (C) 60,000; 84,000 (D) They cannot be determined from the data given - ANSWER (B) 57,600; 86,400