Compensation professionals consult surveys of pay level and pay mix information. Such information helps them to ensure that the compensation system fulfills the company's strategic objectives and is competitive with market rates. Compensation surveys typically contain thousands of data points. It becomes necessary to use statistics to summarize the data in a meaningful way to aid in decision making. A Set of Six Annual Pay Rates 46,750 25,000 62,050 62,800 61,800 96,250 Regression Equation that Describes the Compensation Pay Policy Line Y = a+ bx Where, Y = predicted salary X = job evaluation points a = the Y intercept (This is the Y value at which X = 0) b = the slope= a + bX Where, predicted salary = job evaluation points = the Y intercept (This is the Yvalue at which X: 0) = the slope u-mX-- || a) The median value of the six salary gures is $:|. b) The average value for the six salary figures is $|:|. If we assume the yintercept is $55,000 and the slope is $15.60, the predicted annual salary for a job that is worth 950 job evaluation points is $ a) Based on Ypredicted, leading the market by 15 percent equals a predicted salary of $ b) Based on Ypredicted, lagging the market by 20 percent equals a predicted salary of $