After a Very Successful Year When the Firm Exceeded Targeted

question 278

Multiple Choice

After a very successful year when the firm exceeded targeted earnings levels by 10 percent, each employee received extra pay equal to 10 percent of what they earned for the year. This plan is called

• A) merit salary.
• B) pay-for-knowledge.
• C) profit-sharing.
• D) gainsharing.
• E) pay-for-performance.

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Definitions:

Null Hypothesis

A statement in statistical hypothesis testing that assumes no effect or no difference between phenomena or populations.

Level of Risk

The probability or chance of experiencing harm or loss.

One-sample Z-test

A statistical test used to determine whether there is a significant difference between the mean of a sample and a known or hypothesized population mean.

Mean of a Sample

The average value obtained by dividing the sum of all observations in a sample by the number of observations.