When a Statistical Process Is Used to Duplicate an Existing

question 33

Multiple Choice

When a statistical process is used to duplicate an existing pay structure, it is called:

• A)policy capturing.
• B)committee a priori judgment approach.
• C)factor analysis.
• D)regression analysis.

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Definitions:

Probability

The measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Returns

The profit or loss derived from an investment, often expressed as a percentage of the investment amount.

Dividend Yield

A financial ratio that indicates how much a company pays out in dividends each year relative to its stock price.