Companies Often Find It to Be More Profitable to Use

question 103

Essay

Companies often find it to be more profitable to use a commission or piece-rate system of compensation rather than a salary system, yet many firms continue to pay their workers' salaries.List three reasons why a firm would choose a salary system of compensation.

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Definitions:

Sample Size

The number of observations or data points that form part of a sample taken from a larger population for the purpose of statistical analysis.

Point Estimate

A single value that serves as the best guess or best estimate of a population parameter based on sample data.

Point Estimate

A single value given as the best guess or estimate representing a population parameter, based on sample data.

Proportion

A part, share, or number considered in comparative relation to a whole; a statistical measure often used to describe a characteristic of a sample.