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WorldatWork T3 Exam Syllabus Topics:

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

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