Which of the Following Statements Regarding Performance Incentives Is Accurate

question 129

Multiple Choice

Which of the following statements regarding performance incentives is accurate?

• A)Employees who are heavily rewarded by commissions may overwhelm customers who provide them with a low probability of making a sale.
• B)When awarded stock options,employees tend to hold on to them rather than sell them.
• C)Profit sharing is an effective way of tying employee pay to individual effort.
• D)Gainsharing programs can be successful if the payout formula is generous and employees can participate in the management of the company.

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values in a data set differ from the mean.

Normally Distributed

Describes a probability distribution that is symmetrical around the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Confidence Interval

A scope of values, sourced from statistical analysis of a sample, that is believed to contain the value of an undisclosed population parameter.

Margin of Error

An expression of the amount of random sampling error in a survey's results, indicating a range within which the true value lies with a certain level of confidence.