A Study of the Top 75 MBA Programs Attempted to Predict

question 3

Multiple Choice

A study of the top 75 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. The results of a simple linear regression analysis are shown below: Least Squares Linear Regression of Salary Predictor
$\begin{array} { l r c c l } \text { Variables } & \text { Coefficient } & \text { Std Error } & \text { T } & \text { P } \\ \text { Constant } & 18.1849 & 10.3336 & 1.76 & 0.0826 \\ \text { Size } & 1.47494 & 0.14017 & 10.52 & 0.0000 \end{array}$

R-Squared $\quad 0.6027 \quad$ Resid. Mean Square (MSE) $532.986$
Adjusted R-Squared $0.5972$ Standard Deviation $23.0865$ 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. The results are shown here: 95% confidence interval for E(Y) : ($123,390, $134,220) 95% prediction interval for Y: ($82,476, $175,130) Which of the following interpretations is correct if you want to use the model to estimate E(Y) for all MBA programs?

• A) We are 95% confident that the average starting salary for graduates of a single MBA program that charges $75,000 in tuition will fall between $123,390 and $134,220.
• B) We are 95% confident that the average starting salary for graduates of a single MBA program that charges $75,000 in tuition will fall between $82,476 and $175,130.
• C) We are 95% confident that the average of all starting salaries for graduates of all MBA programs that charge $75,000 in tuition will fall between $123,390 and $134,220.
• D) We are 95% confident that the average of all starting salaries for graduates of all MBA programs that charge $75,000 in tuition will fall between $82,476 and $175,130.

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Definitions:

Gender-neutral

Pertains to language or practices that avoid distinguishing roles or attributes according to people's sex or gender, promoting equality.

Ethnocentrism

Refers to a tendency to regard one’s own culture and group as the standard, and thus superior, whereas all other groups are seen as inferior.

Italian Culture

The customs, traditions, arts, history, and social norms originating from or associated with Italy and its inhabitants.

Superior

A quality or state of being higher in rank, status, quality, or power compared to something else.