I went straight for DENSE_RANK which felt right since ties shouldn't eat up a rank slot.
Start by clarifying the requirements: 'top 3 distinct salary amounts' means we need to rank distinct salaries per department and filter to the top 3. Use a window function like DENSE_RANK() partitioned by department and ordered by salary descending, then filter where rank <= 3. This handles ties correctly and ensures distinct salaries.
Pro tip: Mention that DENSE_RANK() is preferred over ROW_NUMBER() or RANK() because it correctly handles duplicate salaries and ensures exactly the top 3 distinct amounts. Also, note that if the table is large, partitioning by department and ordering by salary can be optimized with an index on (department, salary).
Confirm that 'top 3 distinct salary amounts' means the three highest unique salary values per department, and that ties should not reduce the number of distinct salaries returned.
Select DENSE_RANK() as the window function because it assigns the same rank to identical salaries and does not skip ranks, ensuring we get exactly the top 3 distinct values.
Construct a subquery or CTE that computes DENSE_RANK() OVER (PARTITION BY department ORDER BY salary DESC) as salary_rank, selecting department and salary.
In the outer query, filter WHERE salary_rank <= 3 and select department and salary, optionally ordering by department and salary descending for readability.
Explain why DENSE_RANK() is better than alternatives (e.g., ROW_NUMBER() would not handle ties, RANK() would skip ranks) and mention indexing strategies for large datasets.
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