A Study of the Top MBA Programs Attempted to Predict

question 53

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 Interpret the coefficient of determination value shown in the printout.

• A) We can explain 68.57% of the variation in the average starting salaries around their mean using the model that includes the average GMAT score and the tuition for the MBA program.
• B) We expect most of the average starting salaries to fall within $41,353 of their least squares predicted values.
• C) We expect most of the average starting salaries to fall within $20,676 of their least squares predicted values.
• D) At α = 0.05, there is insufficient evidence to indicate that something in the regression model is useful for predicting the average starting salary of the graduates of an MBA program.

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