C3E: QUANTITATIVE PRINCIPLES IN COMPENSATION MANAGEMENT QUESTIONS AND CORRECT ANSWERS | LATEST EXAM UPDATE

C3E: QUANTITATIVE PRINCIPLES IN
COMPENSATION MANAGEMENT QUESTIONS
AND CORRECT ANSWERS | LATEST 2025-2026
EXAM UPDATE
A survey shows the average pay for senior accounting clerks is
1,570/mth. Your midpoint for senior-accounting clerks is 1,670 and the
average actual pay is 1,550. What is your compa-ratio for accounting
clerks? What is your market index?


(A) .928 compa, .987 market
(B) .928 compa, 1.064 market
(C) .987 compa, 1.064 market
(D) .987 compa, 1.013 market - Answer-(A) .928 compa, .987 market


compa = salary/midpoint 1,550/1,670 = .928
market index = 1,550/1,570 = .987


An executive is hired at 80,000/yr. His is guaranteed a 6,000 salary
increase after 6 months. What % increase is that?


(A) 6.0%
(B) 6.5%

,(C) 7.0%
(D) 7.5% - Answer-(D) 7.5%


6,000/80,000 = 7.5%


Suppose you were given the following data for salary grade 007: Min
4,800 Midpoint 6,000 Max 7,200
What is the salary range spread?


(A) 35%
(B) 37.5%
(C) 40%
(D) 50% - Answer-(D) 50%


salary range spread = max-min/min
7,200-4,800/ 4,800
2,400/4,800 = 50%


If the midpoint is 2,000 and the desired range spread is 50%, what are
the min and max values?


(A) 1,500 min; 2,500 max
(B) 1,600 min; 2,400 max
(C) 1,700 min; 2,300 max

, (D) 1,750 min; 2,250 max - Answer-(B) 1,600 min; 2,400 max


min = midpoint/ 1 + (desired range spread/2)
= 2,000/ 1+ (.50/2) = 2,000/1.25 = 1,600


max = min * (1 + desired range spread)
= 1,600 * (1+.50)
= 1,600 * 1.50 = 2,400


If the minimum is 2,000 and the desired range spread is 40%, what is
the midpoint?


(A) 2,000
(B) 2,300
(C) 2,400
(D) 2,800 - Answer-(C) 2,400


2,000 * 1.40 = 2,800
2,000 + 2,800 = 4,800 /2 = 2,400


Midpoint for grade 14 is 950, and the max is 1,200. Assuming that the
structure is symmetric, what is the range spread? (rounded)


(A) 21%