A Study of the Top MBA Programs Attempted to Predict

question 89

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 The model was then used to create 95% confidence and prediction intervals for y and for E(Y) when the tuition charged by the MBA program was $75,000 and the GMAT score was 675. The results are shown here: 95% confidence interval for E(Y) : ($126,610, $136,640) 95% prediction interval for Y: ($90,113, $173,160) Which of the following interpretations is correct if you want to use the model to estimate Y for a single MBA program?

• A) We are 95% confident that the average starting salary for graduates of a single MBA program that charges $75,000 in tuition and has an average GMAT score of 675 will fall between $126,610 and $136,640.
• B) We are 95% confident that the average starting salary for graduates of a single MBA program that charges $75,000 in tuition and has an average GMAT score of 675 will fall between $90,113 and $173,16,30.
• C) We are 95% confident that the average of all starting salaries for graduates of all MBA programs that charge $75,000 in tuition and have an average GMAT score of 675 will fall between $126,610 and $136,640.
• D) We are 95% confident that the average of all starting salaries for graduates of all MBA programs that charge $75,000 in tuition and have an average GMAT score of 675 will fall between $90,113 and $173,16,30.

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Definitions:

Myelogram

A diagnostic imaging test that uses a dye and X-rays or CT scans to view the spinal cord's structure, particularly to detect abnormalities or injuries.

Spinal Cord

The major nerve pathway from the brain through the spine, responsible for transmitting signals to and from the brain to various parts of the body.

Personal Dosimeter

A device worn by individuals exposed to radiation, which measures the dose of radiation absorbed over time.

Radiation Exposure

The condition of being exposed to radiant energy or particles such as x-rays, gamma rays, or neutrons, which can have health implications.