A Study of the Top MBA Programs Attempted to Predict $$\text { Least Squares Linear Regression of Salary }$$

question 65

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: $$\text { Least Squares Linear Regression of Salary }$$

$\begin{array}{l}\text { Predictor }\\\begin{array}{lcccl}\text { Variables } & \text { Coefficient } & \text { Std Error } & \text { T } & \text { P } \\\text { Constant } & 169.910 & 26.5350 & 6.40 & 0.0000 \\\text { Tuition } & -3.37373 & 0.81171 & -4.16 & 0.0001 \\\text { TxT } & 0.03563 & 0.00590 & 6.03 & 0.0000\end{array}\end{array}$

$\begin{array}{lccc}\text { R-Squared } & 0.7361 & \text { Resid. Mean Square (MSE) } & 358.887 \\\text { Adjusted R-Squared } & 0.7288 & \text { Standard Deviation } & 18.9443\end{array}$



$$\begin{array}{l}\begin{array} { l l l c c c c } \text { Source } & \text { DF } & \text { SS } & \text { MS } & \text { F } & \text { P } \\\text { Regression } & 2 & & 72081.8 & 36040.9 & 100.42 & 0.0000 \\\text { Residual } & & 72 & 25839.8 & 358.9 & \\\text { Total } & & 74 & 97921.7 & & &\end{array}\\\\\text { Cases Included } 75 \text { Missing Cases } 0\end{array}$$
The global-f test statistic is shown on the printout to be the value $\mathrm { F } = 100.42$ . Interpret this value.

• A) There is insufficient evidence, at \(\alpha = 0.05\), to indicate that at least one of the variables proposed in the interaction model is useful at predicting the average starting salary of graduates of MBA programs.
• B) There is sufficient evidence, at \(\alpha = 0.05\), to indicate that at least one of the variables proposed in the interaction model is useful at predicting the average starting salary of graduates of MBA programs.
• C) There is sufficient evidence, at \(\alpha = 0.05\), to indicate that there is a linear relationship between average starting salary of graduates of MBA programs and the tuition of the MBA program.
• D) There is sufficient evidence, at \(\alpha = 0.05\), to indicate that there is a curvilinear relationship between average starting salary of graduates of MBA programs and the tuition of the MBA program.

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Definitions:

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