An Academic Advisor Wants to Predict the Typical Starting Salary

question 73

Multiple Choice

An academic advisor wants to predict the typical starting salary of a graduate at a top business school using the GMAT score of the school as a predictor variable. A simple linear regression of SALARY versus GMAT was created from a set of 25 data points.

Which of the following is not an assumption required for the simple linear regression analysis to be valid?

• A) The errors of predicting SALARY are normally distributed.
• B) The errors of predicting SALARY have a mean of 0.
• C) The errors of predicting SALARY have a variance that is constant for any given value of GMAT.
• D) SALARY is independent of GMAT.

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