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WorldatWork T3 Exam Syllabus Topics:

SectionWeightObjectives
Application to Compensation Design30%- Market Data Analysis
  • 1. Aging and adjusting survey data
    • 2. Calculating market benchmarks
      - Quantitative Decision Making
      • 1. Modeling variable pay and incentives
        • 2. Evaluating compensation program costs
          - Pay Structure Development
          • 1. Compa-ratio and range penetration
            • 2. Midpoints, ranges, and spread
              • 3. Grade progression and overlap
                Inferential & Predictive Statistics25%- Probability & Sampling
                • 1. Sampling methods and error
                  • 2. Basic probability rules
                    - Correlation Analysis
                    • 1. Interpretation of correlation strength
                      • 2. Linear correlation coefficients
                        - Regression Analysis
                        • 1. Simple linear regression
                          • 2. Using regression for market pricing
                            • 3. Multiple regression concepts
                              Foundations of Quantitative Analysis20%- Data Collection & Presentation
                              • 1. Populations vs samples
                                • 2. Graphical representation of data
                                  • 3. Frequency distributions
                                    - Mathematics for Compensation
                                    • 1. Percentages, ratios, and proportions
                                      • 2. Time value of money
                                        • 3. Compound growth and annuities
                                          Descriptive Statistics25%- Distribution Shapes
                                          • 1. Normal distribution
                                            • 2. Skewness and kurtosis
                                              - Measures of Central Tendency
                                              • 1. Weighted averages
                                                • 2. Mean, median, mode
                                                  - Measures of Variability
                                                  • 1. Z-scores and percentiles
                                                    • 2. Variance and standard deviation
                                                      • 3. Range, interquartile range

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