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  • Exam Name: Quantitative Principles in Compensation Management
  • Last Update: 18-May-2024
  • Questions and Answers: 54
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C3E Questions and Answers

Question # 1

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

Question # 2

According to the 2-sigma rule, which of the following is true?

A.

Ninety-five percent of the data points will fall within two standard deviations of the mean.

B.

Only 75% of the data points will fall within two standard deviations

C.

At least 75 percent of the data points will fall within two standard deviations of the mean.

D.

The 2-sigma rule only applies to nominal level data

Question # 3

What does a correlation of +1.0 indicate?

A.

A positive slope

B.

A negative slope

C.

A positive intercept

D.

A negative intercept

Question # 4

You have been asked to comment on a proposed provision in the union contract. over the next 3 years, management proposes increases of 2%, 2.5%, 3% over the 3 year life of the contract. The union negotiator insists that it be 3%, 2.5%, 2.0%. Assuming the hourly rate for a job class is 12.50/hr., what is the rate in three years?

A.

It will be 13.46 after three years

B.

Management rate is higher

C.

Union rate is higher

D.

Cannot calculate

Question # 5

Market based pay = Intercept + (slope) x (job worth). You have collected data and have quantified your model as follows: y = 15000 + 50x. The value of 15,000 in the model represents which of the following?

A.

The slope of the line

B.

The point where the line of best fit crosses the x-axis corresponding to a y-value of zero

C.

The mean for y

D.

The intercept for the line of best fit

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