(Situation P) Below Are the Results of a Survey of America's

question 104

Multiple Choice

(Situation P) Below are the results of a survey of America's best graduate and professional schools. The top 25 business schools, as determined by reputation, student selectivity, placement success, and graduation rate, are listed in the table.
For each school, three variables were measured: (1) GMAT score for the typical incoming student; (2) student acceptance rate (percentage accepted of all students who applied) ; and (3) starting salary of the typical graduating student. $\begin{array}{llllr} & \text { School } & \text { GMAT } & \text { Acc. Rate } & \text { Salary } \\ \hline\text { 1. } & \text { Harvard } & 644 & 15.0 \% & \$ 63,000 \\ \text { 2. } & \text { Stanford } & 665 & 10.2 & 60,000 \\ \text { 3. } & \text { Penn } & 644 & 19.4 & 55,000 \\ \text { 4. } & \text { Northwestern } & 640 & 22.6 & 54,000 \\ \text { 5. } & \text { MIT } & 650 & 21.3 & 57,000 \\ \text { 6. } & \text { Chicago } & 632 & 30.0 & 55,269 \\ \text { 7. } & \text { Duke } & 630 & 18.2 & 53,300 \\ \text { 8. } & \text { Dartmouth } & 649 & 13.4 & 52,000 \\ \text { 9. } & \text { Virginia } & 630 & 23.0 & 55,269 \\ \text { 10. } & \text { Michigan } & 620 & 32.4 & 53.300 \\ \text { 11. } & \text { Columbia } & 635 & 37.1 & 52,000 \\ \text { 12. } & \text { Cornell } & 648 & 14.9 & 50,700 \\ \text { 13. } & \text { CMU } & 630 & 31.2 & 52,050 \\ \text { 14. } & \text { UNC } & 625 & 15.4 & 50,800 \\ \text { 15. } & \text { Cal-Berkeley } & 634 & 24.7 & 50,000 \\ \text { 16. } & \text { UCLA } & 640 & 20.7 & 51,494 \\ \text { 17. } & \text { Texas } & 612 & 28.1 & 43,985 \\ \text { 18. } & \text { Indiana } & 600 & 29.0 & 44,119 \\ \text { 19. } & \text { NYU } & 610 & 35.0 & 53,161 \\ \text { 20. } & \text { Purdue } & 595 & 26.8 & 43,500 \\ \text { 21. } & \text { USC } & 610 & 31.9 & 49,080 \\ \text { 22. } & \text { Pittsburgh } & 605 & 33.0 & 43,500 \\ \text { 23. } & \text { Georgetown } & 617 & 31.7 & 45,156 \\ \text { 24. } & \text { Maryland } & 593 & 28.1 & 42,925 \\ \text { 25. } & \text { Rochester } & 605 & 35.9 & 44,499\end{array}$

The academic advisor wants to predict the typical starting salary of a graduate at a top business school using GMAT score of the school as a predictor variable. A simple linear regression of SALARY versus GMAT using the 25 data points in the table are shown below. $$\beta _ { 0 } = - 92040 \quad \hat { \beta } _ { 1 } = 228 \quad s = 3213 \quad r ^ { 2 } = .66 \quad r = .81 \quad \mathrm { df } = 23 \quad t = 6.67$$
-Set up the null and alternative hypotheses for testing whether a positive linear relationship exists between SALARY and GMAT in the situation above.

• A) \(H _ { 0 } : \beta _ { 1 } = 0\) vs. \(H _ { \mathrm { a } } : \beta 1 \neq 0\)
• B) \(H _ { 0 } : \beta _ { 1 } = 0\) vs. \(H _ { \mathrm { a } } : \beta _ { 1 } > 0\)
• C) \(H _ { 0 } : \beta _ { 1 } = 228\) vs. \(H _ { \mathrm { a } } : \beta _ { 1 } > 228\)
• D) \(H _ { 0 } : \beta _ { 1 } > 0\) vs. \(H _ { \mathrm { a } } : \beta _ { 1 } < 0\)

Identify and describe different types of preferred stock and their characteristics, including participating, cumulative, non-cumulative, and non-participating stocks.

Understand the rights and privileges associated with preferred and common stocks, including dividend preferences, voting rights, and preemptive rights.

Comprehend the significance of par value, no-par value, and stated value for stocks.

Apply knowledge of stock transactions to record journal entries accurately, including transactions involving common stock, preferred stock, and excess of par value.