Free Quantitative Principles in Compensation Management Exam C3E Exam Practice Test

On January 1 of last year, you had 1,000 emps. Dec 31 there was a 20% reduction in the workforce. By July of this year, you then increased your workforce by 20%. Do you now have 1,000 emps again? If not, how many?

• Yes, 1,000
• No; 800 emps on 12/31, 960 in July
• No; 800 emps on 12/31, 850 in July
• Not enough info to compute

An employee earning 50,000 annually contributes 8% of his/her salary to a voluntary savings plan in the first year of participation. Excluding investment earnings, how much is in this employee's account at the end of the first year?

• 2,000
• 4,000
• 5,500
• 8,000

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?

• .928 compa, .987 market
• .928 compa, 1.064 market
• .987 compa, 1.064 market
• .987 compa, 1.013 market

How can compensation professionals ensure their statistical data are not distorted?

• Use statistical software, which prevents distortion of data.
• Develop a plan that provides an objective approach to collecting, organizing and displaying data
• Avoid training that shows how data can be distorted, as that training might cause one to distort data subconsciously.
• Distortion of data is commonly accepted as a method for making compelling arguments for change in orgs.

In order to satisfy ordinal level data requirements, you must be able to do which of the following?

• Have a true zero
• Have a constant interval from point to point
• Be able to meaningfully arrange the data in rank order
• Be able to establish ratios

A distribution that is skewed with a tail to the left is which of the following?

• Positively skewed
• Symmetric
• Negatively skewed
• Normal

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?

• The slope of the line
• The point where the line of best fit crosses the x-axis corresponding to a y-value of zero
• The mean for y
• The intercept for the line of best fit

Why do compensation professionals collect & use data?

• To support personal agendas
• To respond to stock price volatility
• To improve changes of making sound decisions
• To replace the need for modeling

How much interest will you earn on 2,500 in three years, if the interest rate is 6%, and the interest is compounded annually?

• 309
• 477.54
• 489.05
• 977.54

At 10% investment return, what would be in the same employee's account including investment earnings at the end of the year?

• 2,160
• 4,400
• 5,940
• 8,640