An Academic Advisor Wants to Predict the Typical Starting Salary

question 57

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

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Definitions:

Younger Sibling

A sibling who is born after another child in the same family, often having a unique social and developmental relationship with other family members.

Affluent Family

A household characterized by wealth and financial abundance, often associated with access to high-quality education, healthcare, and living conditions.

Nuclear Family

A family unit consisting of two parents and their children, living together as a single household.

Military Family

A family where one or more members are serving in the military, often facing unique challenges such as frequent relocations.