What does the correlation coefficient of the market pay line tell you?
A) "goodness of fit" between the job evaluation points and market pay
B) pay equity adjustments to be made
C) degree of freedom in market rates
D) accuracy of the market data

Question

Quizplus · Accepted Answer

The correlation coefficient of the market pay line tells us the "goodness of fit" between the job evaluation points and market pay. A higher correlation coefficient indicates a better fit, which implies that the pay rates are competitive and aligned with the external market rates.

What Does the Correlation Coefficient of the Market Pay Line