A Study of the Top MBA Programs Attempted to Predict $y =$

question 24

Multiple Choice

A study of the top MBA programs attempted to predict $y =$ the average starting salary (in $\$ 1000$ 's) of graduates of the program based on $x =$ the amount of tuition (in $\$ 1000$ 's) charged by the program. After first considering a simple linear model, it was decided that a quadratic model should be proposed. Which of the following models proposes a 2nd-order quadratic relationship between $x$ and $y$ ?

• A) \(\mathrm { E } ( \mathrm { y } ) = \beta _ { 0 } + \beta _ { 1 } \mathrm { x } _ { 1 }\)
• B) \(\mathrm { E } ( \mathrm { y } ) = \beta _ { 0 } + \beta _ { 1 } \mathrm { x } _ { 1 } + \beta _ { 2 } \mathrm { x } _ { 1 } ^ { 2 }\)
• C) \(\mathrm { E } ( \mathrm { y } ) = \beta _ { 0 } + \beta _ { 1 } \mathrm { x } _ { 1 } + \beta _ { 2 } \mathrm { x } _ { 1 } ^ { 2 } + \beta _ { 3 } \mathrm { x } _ { 1 } ^ { 3 }\)
• D) \(\mathrm { E } ( \mathrm { y } ) = \beta _ { 0 } + \beta _ { 1 } \mathrm { x } _ { 1 } + \beta _ { 2 } \mathrm { x } _ { 2 } + \beta _ { 3 } \mathrm { x } _ { 1 } \mathrm { x } _ { 2 }\)

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Definitions:

Flow State

A mental state in which a person performing an activity is fully immersed in a feeling of energized focus, full involvement, and enjoyment in the process.

Mindfulness

A mental state achieved by focusing one's awareness on the present moment, often as a therapeutic technique.

Humanistic Psychology

A branch of psychology focused on the “whole person,” including free will, creativity, and human potential.

Hierarchy Of Needs

Maslow's theory proposing that human beings have a set of motivation systems unrelated to rewards or unconscious desires, typically depicted as a five-tier model of human needs.