A Study of the Top MBA Programs Attempted to Predict

question 43

Multiple Choice

A study of the top MBA programs attempted to predict the average starting salary (in $1000's) of graduates of the program based on the amount of tuition (in $1000's) charged by the program and The average GMAT score of the program's students. The results of a regression analysis based on a Sample of 75 MBA programs is shown below: Least Squares Linear Regression of Salary



The model was then used to create 95% confidence and prediction intervals for y and for E(Y) when The tuition charged by the MBA program was $75,000 and the GMAT score was 675. The results are Shown here:

95% confidence interval for E(Y) : ($126,610, $136,640)
95% prediction interval for Y: ($90,113, $173,160)

Which of the following interpretations is correct if you want to use the model to estimate E(Y) for All MBA programs?

• A) We are 95% confident that the average starting salary for graduates of a single MBA program that charges $75,000 in tuition and has an average GMAT score of 675 will fall between $90,113 and $173,16,30.
• B) We are 95% confident that the average starting salary for graduates of a single MBA program that charges $75,000 in tuition and has an average GMAT score of 675 will fall between $126,610 and $136,640.
• C) We are 95% confident that the average of all starting salaries for graduates of all MBA programs that charge $75,000 in tuition and have an average GMAT score of 675 will fall Between $126,610 and $136,640.
• D) We are 95% confident that the average of all starting salaries for graduates of all MBA programs that charge $75,000 in tuition and have an average GMAT score of 675 will fall Between $90,113 and $173,16,30.

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Definitions:

Classically Conditioned

The process by which an individual learns to associate a neutral stimulus with a biologically potent stimulus, producing a response to the neutral stimulus.

Square

A four-sided polygon with all sides of equal length and all angles measuring 90 degrees.

700 Hertz

A frequency of 700 cycles per second, often referenced in acoustics, signaling, or telecommunications.

1000 Hertz

A frequency of sound wave equivalent to 1000 cycles per second, often utilized in audio testing and applications.