SOLVED

21) How often is the Consumer Price Index calculated for the United States? A) daily B) weekly C) monthly D) twice a year 22) The Consumer Price Index represents the average price changes for the price of goods and services in how many regions? A) 2 B) 4 C) 6 D) 8 23) In the regression analysis formula, what does the X represent? A) predicted salary B) job evaluation points C) the slope D) the Y intercept 24) In regression, what does it mean when the R2 = 1? A) All of the variation in market pay can be explained by the company’s job structure. B) None of the variation in market pay can be explained by the company’s job structure. C) All of the variation in market pay can be explained by the company’s external pay rates. D) All of the variation in market pay can be explained by the benchmark rates. 25) Compensation professionals in XYZ Company use regression analysis to determine the pay rates of its marketing professionals. There are 4 different marketing job titles in XYZ Company. Compensation professionals use job evaluation points assigned to each marketing job title and a salary survey data. In other words, they regress job evaluation points on the salary data. What does it mean when the R2 value of this regression turns out to be 0.85? A) All of the variation in market pay can be explained by the company’s job structure. B) None of the variation in market pay can be explained by the company’s job structure. C) A large amount of the variation in market pay can be explained by company’s job structure. D) A small amount of the variation in market pay can be explained by company’s job structure 26) XYZ Company is a world leader in medical device manufacturing. Aiming to continue its market position in this industry, XYZ Company pursues differentiation strategy. As a result, this company compensates its employees higher than almost all competitors in order to attract and retain best employees. What kind of pay level policy does XYZ Company follow? A) market match B) market lag C) market lead D) market pay line 27) XYZ Inc. pursues a low-cost strategy in its industry and generally needs lower skilled employees. As a result, their management team decided to establish a compensation policy that pays less than the marketplace. In recent years, the company became susceptible to labor shortages and high turnover. What kind of pay level policy does XYZ Inc. follow? A) market match B) market lag C) market lead D) market pay line 28) Market match policies are generally set to which quartile in the salary survey? A) 1st B) 2nd C) 3rd D) 4th 29) Market lag policies are generally set to which quartile in the salary survey? A) 1st B) 2nd C) 3rd D) 4th 30) Companies pursuing a differentiation strategy are most likely to use which pay level policy? A) market lead B) market average C) market lag D) market match