Name five key questions to ask regarding variables of interest
- 1. What is it?
- 2. What is the level of measurement?
- 3. Data = population or sample?
- 4. Should it be grouped?
- 5. Any other variables available?
Name the four levels of measurement
- 1. Nominal
- 2. Ordinal
- 3. Interval
- 4. Ratio
Define nominal measurement
Measurements used to identify or categorize (e.g. SSN, EEID, M/F, etc.)
Define ordinal measurement
Measurements used to put data in order (e.g. rankings, Gold/Silver/Bronze, performance ratings)
Define interval measurement
Measurements used to show value where zero value is arbitrary (e.g. temperature)
Define ratio measurement
Measurements used to show value where zero value has meaning (e.g. salary, employee count, turnover, etc.)
Why do compensation professionals collect and use data?
To improve chances of making sound decisions
A true, absolute zero exists for which level of measurement?
Salary is an example of which level of measurement?
In order to satisfy ordinal level data requirements, what must you be able to do?
Be able to meaningfully arrange the data in rank order
Rating employee performance on a five-point scale ranging from "5" (outstanding) to "1" (unsatisfactory) is most likely an example of which level of measurement?
How do you calculate compa-ratio?
Salary divided by Midpoint
How do you calculate market index?
Salary divided by Market Rate
How do you calculate range penetration?
- Pay - Minimum of Grade
- Maximum of Grade - Minimum of Grade
How do you calculate range spread?
- Max of Range - Min of Range
- Min of Range
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?
You don't know the budget, therefore the answer can't be calculated.
What is the individual compa-ratio for an employee whose salary is 25k, with the midpoint at 30k?
If you earn 50k, and your co-worker earns 60k, what percent more is he worth compared to you?
He is 20% more of a man than you will ever be.
Midpoint = 72k
Range Spread = 50%
Tell me min & max
- 57,600 - 86,400
- Midpoint / [1+(Range Spread/2)] = Min.
- Min. + (Range Spread * Min.) = Max.
Provide the compound interest formula in terms of future and present values
Future Value = Present Value * (1 + Interest%) ^ N
What does the rule of 72 indicate?
You can calculate years to double by taking 72 / Growth rate. This will give you a rough estimate
What is an annuity?
Regular payments made over a period of time
Investment that pays on a scheduled basis over a fixed amount of time.
All the data in a dataset
A portion of the total data in a dataset
Name the steps for histogramming
- 1.) Organize the data
- 2.) Group the data
- 3.) Determine intervals
- 4.) Graph them
This answer is stupid:
"What is interpolation?"
An exact value representing a remainder
What is the "range" of a dataset?
Maximum - Minimum
What is the "interquartile range?"
75th percentile - 25th percentile