An Academic Advisor Wants to Predict the Typical Starting Salary

question 56

Short Answer

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 using 25 data points is shown below. $$\hat { \beta } _ { 0 } = - 92040 \hat { \beta } 1 = 228 \mathrm {~s} = 3213 \mathrm { r } ^ { 2 } = .66 \quad r = .81 \mathrm { df } = 23 \quad t = 6.67$$
Give a practical interpretation of $r ^ { 2 } = .66$ .
A) $66 \%$ of the sample variation in SALARY can be explained by using GMAT in a straight -line model.
B) We expect to predict SALARY to within $2 [ \sqrt { .66 } ]$ of its true value using GMAT in a straight-line model.
C) We estimate SALARY to increase $\$ .66$ for every 1 -point increase in GMAT.
D) We can predict SALARY correctly $66 \%$ of the time using GMAT in a straight-line model.

• A) \(66 \%\) of the sample variation in SALARY can be explained by using GMAT in a straight -line model.
• B) We expect to predict SALARY to within \(2 [ \sqrt { .66 } ]\) of its true value using GMAT in a straight-line model.
• C) We estimate SALARY to increase \(\$ .66\) for every 1 -point increase in GMAT.
• D) We can predict SALARY correctly \(66 \%\) of the time using GMAT in a straight-line model.

Understand the concept and implications of organizational politics.

Recognize the role of political skills in job performance, job satisfaction, and career success.

Identify the behaviours and characteristics of high Machiavellians in organizational contexts.

Understand how networking and political skills impact organizational dynamics and individual career progression.

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Definitions:

Ending Inventory

The total value of goods available for sale at the end of an accounting period, after all sales and purchases have been accounted for.

Accounting Period

A specific time frame for which financial statements are prepared, to measure the performance and financial position of a business.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from revenue, indicating the company's financial performance over a specific period.

Specific Identification Method

An inventory costing method in which costs are assigned to individual items, enabling precise cost determination of goods sold and ending inventory.