A Study of the Top MBA Programs Attempted to Predict

question 45

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

$\begin{array}{lcccccccc}\text {Predictor}\\\text { Variables } & \text { Coefficient } & \text { Std Error } & \text { T } & & \text { P } & {\text { VIF }} \\\text { Constant } & -203.402 & 51.6573 & -3.94 & & 0.0002 & 0.0 \\\text { Gmat } & 0.39412 & 0.09039 & 4.36 & & 0.0000 & 2.0 & \\\text { Tuition } & 0.92012 & 0.17875 & 5.15 & & 0.0000 & 2.0 &\end{array}$


$\begin{array}{lllcccc}\text { Source } & \text { DF } & \text { SS } & \text { MS } & \text { F } & \text { P } \\\text { Regression } & 2 & 67140.9 & 33570.5 & 78.53 & 0.0000 \\\text { Residual } & 72 & 30780.8 & 427.5 & \\\text { Total } & 74 & 97921.7 & & &\end{array}$

Interpret the p-value for the global f-test shown on the printout.

• A) At ? = 0.05, there is sufficient evidence to indicate that something in the regression model is useful for predicting the average starting salary of the graduates of an MBA program.
• B) At ? = 0.05, there is insufficient evidence to indicate that the average GMAT score of the MBA program's students is useful for predicting the average starting salary of the graduates of an
• MBA program.
• C) At ? = 0.05, there is sufficient evidence to indicate that the average GMAT score of the MBA program's students is useful for predicting the average starting salary of the graduates of an
• MBA program.
• D) At ? = 0.05, there is insufficient evidence to indicate that something in the regression model is useful for predicting the average starting salary of the graduates of an MBA program.

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Definitions:

Cognitive Perspective

An approach in psychology that focuses on the way people think, understand, and perceive the world around them.

Behaviour

The behavior or responses of a person when influenced by external or internal factors.

Unconscious Mind

A part of the mind that is not accessible to conscious thought, containing desires, feelings, and memories below the level of conscious awareness.

Profession

A paid occupation, especially one that involves prolonged training and a formal qualification.