Market Pricing - Module 4 - Quiz, Trivia & Questions

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Quizzes Created: 6 | Total Attempts: 1,872

Questions: 12 | Attempts: 127 | Updated: Apr 8, 2024

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This test is for module 4 of the Market Pricing exam for the Certified Compensation Professional Exam (CCP).

Questions and Answers

1.

The second step in the market pricing model is to collect survey data.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
It's the first step in the market pricing model.

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2.

Data surverys should be the sole source of data used to determine pay ranges and compensation packages.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
You should also use other sources like government labor statistics, reporting of executive compensation (e.g. public companies in their regulatory filings), proxies, association resources, and many other factors (i.e. your org's total rewards program)

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3.

When selecting which survey(s) to use, you should consider these factors:
- A.
  
  Support - Get the support of management
- B.
  
  Rationale - know why you are seeking survey information
- C.
  
  Current executive compensation - match your compensation system to other similar organizations
Correct Answer(s)
A. Support - Get the support of management
B. Rationale - know why you are seeking survey information

Explanation
When selecting which survey(s) to use, it is important to consider the support of management. This is because without their support, it may be difficult to gather the necessary resources and cooperation from employees to successfully conduct the survey. Additionally, it is crucial to know why you are seeking survey information, as having a clear rationale will help guide the survey design and ensure that the collected data is relevant and useful.

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4.

When selecting which survey(s) to use, you should consider these factors:
- A.
  
  Reputable sources - use reputable sources
- B.
  
  Rationale - know why you are seeking survey information
- C.
  
  Labor market - understanding your labor market is critical
- D.
  
  Rapid response - make certain your vendor can provide you with the survey quickly.
Correct Answer(s)
A. Reputable sources - use reputable sources
B. Rationale - know why you are seeking survey information
C. Labor market - understanding your labor market is critical
5.
When selecting which survey(s) to use, one of the factors is selecting aThe right sourcesa. To select the arighta sources, you should consider:
- survery participants and the number of incumbents reported
- age of the survey
- typical sample size
- desired analysis and data sorts
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
To select the right sources for a survey, several factors should be considered. These factors include the survey participants and the number of incumbents reported, the age of the survey, the typical sample size, and the desired analysis and data sorts. Therefore, the statement "When selecting which survey(s) to use, one of the factors is selecting the right sources" is true.

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6.

For high demand jobs or hot skill jobs, how do you measure the market?
- A.
  
  Shift focus from the more broadly defined job role to the individual employees with specific job related skills.
- B.
  
  Create new skill and skill level definitions.
- C.
  
  Define base skills and capture compensation data on them to serve as a reference point for determining the premium for hot skills
- D.
  
  Conduct an informal telephone or fax survey of your competitors for people.
Correct Answer(s)
A. Shift focus from the more broadly defined job role to the individual employees with specific job related skills.
B. Create new skill and skill level definitions.
C. Define base skills and capture compensation data on them to serve as a reference point for determining the premium for hot skills

Explanation
The correct answer suggests that in order to measure the market for high demand jobs or hot skill jobs, one should shift focus from the broadly defined job role to the individual employees with specific job-related skills. This means that instead of looking at job titles or descriptions, it is important to identify the specific skills that are in demand. Additionally, creating new skill and skill level definitions can help in accurately assessing the market. Furthermore, defining base skills and capturing compensation data on them can serve as a reference point for determining the premium for hot skills.

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7.

For high demand jobs or hot skill jobs, how do you measure the market?
- A.
  
  Capture a richer array of survey data by blending.
- B.
  
  Conduct the survey more frequently
- C.
  
  Call your survey vendor and ask for additional data for these types of jobs.
Correct Answer(s)
A. Capture a richer array of survey data by blending.
B. Conduct the survey more frequently

Explanation
To measure the market for high demand jobs or hot skill jobs, capturing a richer array of survey data by blending can be effective. This means combining different types of surveys or data collection methods to gather a more comprehensive understanding of the market. Additionally, conducting the survey more frequently can provide more up-to-date and accurate information about the demand for these jobs.

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8.

For high demand jobs or hot skill jobs, what do you you need to know about Skill-based pay?
- A.
  
  Driven (like the market) by supply and demand.
- B.
  
  Fluctuates more dramatically from quarter to quarter in reaction to the market.
- C.
  
  These types of skill sets are the first to show labor market trends.
Correct Answer(s)
A. Driven (like the market) by supply and demand.
B. Fluctuates more dramatically from quarter to quarter in reaction to the market.

Explanation
Skill-based pay for high demand jobs or hot skill jobs is driven by supply and demand, just like the overall market. This means that when there is a high demand for certain skills, the pay for individuals with those skills increases. Additionally, skill-based pay for these types of jobs fluctuates more dramatically from quarter to quarter in response to market conditions. This is because the demand for specific skills can change rapidly, leading to changes in compensation. Therefore, skill-based pay is closely tied to market trends and can vary significantly based on the current supply and demand dynamics.

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9.

As a general rule, salary information is considered to reflect the marketplace within plus or minus 10%.
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
Salary information is considered to reflect the marketplace within plus or minus 10% because it allows for variations in compensation based on factors such as experience, education, location, and industry standards. This range ensures that salaries are competitive and aligned with market trends, allowing employers to attract and retain qualified talent. It also provides flexibility for negotiations and adjustments based on individual circumstances. Overall, this general rule helps maintain fairness and transparency in salary discussions and ensures that compensation remains in line with the market.

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10.

The median salary answers the question, "What is the middle salary in a set of ranked salaries?"
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
The statement is true because the median salary is the middle value in a set of ranked salaries. It is calculated by arranging all the salaries in ascending or descending order and finding the middle value. The median is useful in determining the typical salary in a dataset, as it is not affected by extreme values or outliers. Therefore, it provides a more accurate representation of the central tendency of the salaries compared to the mean.

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11.

The weighted-median salary answers the question, "On average, what are incumbents in a particular job paid?"
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
The weighted-median salary is a measure that takes into account both the salary level and the number of individuals at each salary level. It provides an average salary that reflects the distribution of salaries within a particular job. Therefore, it accurately answers the question of what incumbents in a particular job are paid on average.

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12.

The unweighted-mean salary answers the question, "On average, what are companies paying a particular job?"
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
The unweighted-mean salary calculates the average salary for a particular job by taking the sum of all salaries and dividing it by the total number of salaries, regardless of any other factors such as company size or industry. It provides a general overview of what companies are paying for that job, without considering any specific variables. Therefore, the statement "On average, what are companies paying a particular job?" is true.

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Current Version
Apr 08, 2024

Quiz Edited by
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Mar 04, 2012

Quiz Created by
Patosan

Market Pricing - Module 4

The second step in the market pricing model is to collect survey data.

Data surverys should be the sole source of data used to determine pay ranges and compensation packages.

When selecting which survey(s) to use, you should consider these factors:

When selecting which survey(s) to use, you should consider these factors:

When selecting which survey(s) to use, one of the factors is selecting aThe right sourcesa. To select the arighta sources, you should consider:

survery participants and the number of incumbents reported

age of the survey

typical sample size

desired analysis and data sorts

For high demand jobs or hot skill jobs, how do you measure the market?

For high demand jobs or hot skill jobs, how do you measure the market?

For high demand jobs or hot skill jobs, what do you you need to know about Skill-based pay?

As a general rule, salary information is considered to reflect the marketplace within plus or minus 10%.

The median salary answers the question, "What is the middle salary in a set of ranked salaries?"

The weighted-median salary answers the question, "On average, what are incumbents in a particular job paid?"

The unweighted-mean salary answers the question, "On average, what are companies paying a particular job?"

Market Pricing - Module 4

The second step in the market pricing model is to collect survey data.

Data surverys should be the sole source of data used to determine pay ranges and compensation packages.

When selecting which survey(s) to use, you should consider these factors:

When selecting which survey(s) to use, you should consider these factors:

When selecting which survey(s) to use, one of the factors is selecting aThe right sourcesa. To select the arighta sources, you should consider: survery participants and the number of incumbents reported age of the survey typical sample size desired analysis and data sorts

For high demand jobs or hot skill jobs, how do you measure the market?

For high demand jobs or hot skill jobs, how do you measure the market?

For high demand jobs or hot skill jobs, what do you you need to know about Skill-based pay?

As a general rule, salary information is considered to reflect the marketplace within plus or minus 10%.

The median salary answers the question, "What is the middle salary in a set of ranked salaries?"

The weighted-median salary answers the question, "On average, what are incumbents in a particular job paid?"

The unweighted-mean salary answers the question, "On average, what are companies paying a particular job?"

When selecting which survey(s) to use, one of the factors is selecting aThe right sourcesa. To select the arighta sources, you should consider:

survery participants and the number of incumbents reported

age of the survey

typical sample size

desired analysis and data sorts