C3E: Quantitative Principles in Compensation Management Quiz

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?