Glossary Terms

Question 1

Bi-modal

Answer 1

a distribution of two modes

Question 2

central tendency

Answer 2

in statistics, some clustering around a central value in a distribution of data usually determined by one of the measures of location

Question 3

compa-ratio

Answer 3

the ratio of an actual pay rate (numerator) to the midpoint or some other control point for the pay range (denominator)

Question 4

convenience sampling

Answer 4

a process by which samples are drawn from a population based on ease of the sampling set

Question 5

data storytelling

Answer 5

the ability to effectively communicate insights from a dataset using narratives and visualizations

Question 6

financial statements

Answer 6

reports on the financial results for a fiscal period and the financial condition of the organization at the end of the fiscal period

Question 7

interval measurement

Answer 7

measurement in which equal differences on the scale represent the same amount, no matter the location on the scale. no absolute zero exists

Question 8

investment management

Answer 8

the process of managing money

Question 9

interquartile range

Answer 9

the difference between the 25th percentile (first quartile) and the 75th percentile (third quartile) in an ordered array of data

Question 10

linear regression

Answer 10

the statistical technique of fitting a straight line to a set of (x, y) data, using the method of least squares. it assumes that the basic relationship between two variables is linear in nature

Question 11

market index

Answer 11

an index computed by dividing the pay received by an individual by the market pay for that job

Question 12

mean

Answer 12

a simple arithmetic average obtained by adding a set up numbers and then dividing the sum by the number of items in the set

Question 13

median

Answer 13

the middle item in a set of ranked data points containing an odd number of items, when an even number of items are ranked, the average of the two middle items is the median

Question 14

metrics

Answer 14

a quantifiable means of monitoring and measuring key performance goals

Question 15

mode

Answer 15

the category or value that occurs most frequently in a set of observations

Question 16

model

Answer 16

a representation of reality that describes variables, and the action of the system if changes are made in the variables or in the relationships

Question 17

multiple regression

Answer 17

the statistical technique of creating a model of a y-variable (dependent variable) as a function of more than one x-variable (independent variable) using the method of least squares it allows an assessment of the joint impact of several x-variables on the y-variable

Question 18

nominal measurement

Answer 18

measurement that uses numbers merely as labels or identifiers (number of companies or numbering of jobs in a salary survey)

Question 19

nonrandom sampling

Answer 19

a process by which samples are drawn without using some form of randomized selection procedure

Question 20

normal distribution

Answer 20

a particular bell shaped distribution, used frequently as a basis for statistical inference

Question 21

nonsymmetric distribution

Answer 21

a set of plotted data points in which one side is not the mirror image of the other. graphed points tend to cluster more on one side than the other, leaving a tail on one side

Question 22

ordinal measurement

Answer 22

measurement that indicates the order, or rank, of the items being measuredp

Question 23

ercentage

Answer 23

a ratio expressed in relation to 100 that is obtained by dividing the number into another and then multiplying by 100

Question 24

percentile

Answer 24

a measure of location in a distribution of numbers that defines the value below which a given percentage of the data fallo

Question 25

population

Answer 25

in statistics, the set of all elementary unites of interest in a given situation

Question 26

present value

Answer 26

the value of an amount of money at the present time or at the beginning of a specific period of time

Question 27

quartile

Answer 27

a distribution divided into fourths

Question 28

random sampling

Answer 28

a process by which samples are drawn from a population in which every possible sample of that size has an equal chance of being selected

Question 29

range

Answer 29

for a set of data: the difference between the maximum value and the minimum value, for a pay grade: the percentage by which the maximum pay exceeds the minimum

Question 30

range penetration

Answer 30

the level of an individual's pay compared to the total pay range (rather than compared to midpoint)

Question 31

ratio measurement

Answer 31

measurement that indicates how much, or the quantity of the item or attribute being measured. there is a true zero, where zero indicates nothing of what is being measured

Question 32

return on investment

Answer 32

in financial analysis, any of the "return" measures, including return on assets, return on equity, return on net assets, and return on total capital

Question 33

sample

Answer 33

in statistics, a subset of the elementary unites of the (subject) population

Question 34

skewed distribution

Answer 34

a set of plotted data that is nonsymetrics, with a tail of extreme values in one direction

Question 35

slope

Answer 35

in a simple linear model, y=a+bx, the coefficient b is the change in the value of y, the dependent variable, for each unit change in the value of x, the independent variable. graphically, slope represents the rise over the run of a given line and directly determines a line's steepness

Question 36

standard deviation

Answer 36

the square root of the average squared difference between data points and the mean. standard deviation is a measure of variability which indicates an average relative distance between each data point and the mean

Question 37

symmetric distribution

Answer 37

a plotting of data in which one half is the mirror image of the other half. the point of symmetry is the median

Question 38

unweighted mean

Answer 38

a simple arithmetic average of individual means

Question 39

weighted mean

Answer 39

an average of means calculated by weighting each individual according to the number of data points that made up that individual mean