After plotting a regression (market line),you determine that the slope is very steep.What possible conclusion can you make from observing the slope of the regression line?
A) The correlation coefficient is approaching -1 (negative one).
B) There is too much spread in job evaluation points between low-value and high-value jobs.
C) There is not sufficient spread in job evaluation points between low-value and high-value jobs.
D) Lower-value jobs appear to be compensated above market rates.

Question

Quizplus · Accepted Answer

A steep slope indicates that there is not sufficient spread in job evaluation points between low-value and high-value jobs. This means that there is little differentiation in compensation between jobs of different values, which could lead to issues such as low morale among higher-value employees or overpaid lower-value employees. The correlation coefficient does not necessarily have a direct relation to the slope of the regression line in this case. Option B implies that there is too much spread, which contradicts a steep slope. Option D assumes that lower-value jobs are compensated above market rates, which may not necessarily be the case.

After Plotting a Regression (Market Line),you Determine That the Slope