You are planning to open a grocery store in Platteville, Wisconsin. To determine what you should pay your employees, you conducted a wage survey of grocery stores in towns of <15,000 population within a 25-mile radius of Platteville. Please see the survey results below.

a) Provide the equation for the market pay line and show it graphically for the data using regression analysis. You are not required to use spreadsheet software (e.g., Excel) to do this. You may draw the pay line by hand Your analysis of the data resulted in the following weighted average base pay amounts. Job evaluation points to be used for the regression analysis are also provided:

Manager =	$18.84/hour	150 points
Checker =	$9.12/hour	70 points
Bagger =	$7.86/hour	50 points

b) Assuming your pay strategy is to "meet," set a pay range for each position. You may consider broadbanding if it appears to make sense in this situation. Briefly explain the rationale for the ranges you set. Remember to adjust pay ranges to meet legal minimum wage requirements if necessary.

**NOTE: The range spread is based on your judgment. There are no specific rules for setting pay ranges, although you should consider the guidelines discussed in the text. For most people, this is the most difficult part of the process. Be sure you can specifically justify all decisions you make.

c) Show your pay ranges graphically. That is, show how they look when built around your new pay line as developed through your regression. This may also be done by hand and a scanned copy placed in the Dropbox if you wish.

MANAGERS

Store A

20

17.5

Store B

19

16

Store C

19.5

17.9

Store D

18.9

18.75

18.25

Store E

19.1

18.5

18.75

20

Store F

19.5

21