The market line is
A) a regression line derived from job evaluation points and the results of the pay survey.
B) calculated from the median point in each of the organization's pay ranges.
C) a line representing the organization's average pay for each job in a job family graphed against the average pay for each job in the pay survey.
D) typically so affected by outliers that it must be adjusted according to the expert judgment of compensation specialists.

Question

Quizplus · Accepted Answer

The market line, also known as the market pay line, is derived from a regression analysis that correlates job evaluation points (internal value) with external market pay data collected through pay surveys. This line helps in establishing a relationship between the value of the job inside the organization and what the external job market pays for similar positions.

The Market Line Is