A Study of the Top MBA Programs Attempted to Predict

question 99

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


$\begin{array}{lrrr}\text { R-Squared } & 0.6857 & \text { Resid. Mean Square (MSE) } & 427.511 \\\text { Adjusted R-Squared } & 0.6769 & \text { Standard Deviation } & 20.6763\end{array}$

Identify the test statistic that should be used to test to determine if the amount of tuition charged by a program is a useful predictor of the average starting salary of the graduates of the program.

• A) \(t = 5.15\)
• B) \(t = 20.67\)
• C) \(t = - 3.94\)
• D) \(t = 4.36\)

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