Which of the Following Statements About Incentive Pay Ceilings Is

question 9

Multiple Choice

Which of the following statements about incentive pay ceilings is true?

• A) Incentive ceilings can be used to protect against windfalls
• B) Incentive ceilings make a firm's maximum potential sales compensation expense more predictable and controllable
• C) Firms in relatively low paying industries are more likely to impose incentive ceilings than those in high-paying industries
• D) Incentive ceilings are used to ensure that top-performing salespeople will not make such high earnings that other employees suffer resentment and low morale
• E) All of the above statements about incentive ceilings are true

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Definitions:

Degrees of Freedom

The number of independent pieces of information available to estimate another piece of information or the parameters in a statistical model.

One-sample Chi-square Test

A statistical test used to compare the observed distribution of data with an expected distribution to test the goodness of fit.

Medians

The middle value in a data set, which divides the set into two equal halves.

Mann-Whitney U

A nonparametric test used to compare differences between two independent samples.