(Situation P) Below Are the Results of a Survey of America's

question 107

Multiple Choice

(Situation P) Below are the results of a survey of America's best graduate and professional schools. The top 25 business
schools, as determined by reputation, student selectivity, placement success, and graduation rate, are listed in the table.
For each school, three variables were measured: (1) GMAT score for the typical incoming student; (2) student acceptance
rate (percentage accepted of all students who applied) ; and (3) starting salary of the typical graduating student. $$\begin{array} { l l l l l } & \text { School } & \text { GMAT } & \text { Acc. Rate } & \text { Salary } \\\hline \text { 1. } & \text { Harvard } & 644 & 15.0 \% & \$ 63,000 \\\text { 2. } & \text { Stanford } & 665 & 10.2 & 60,000 \\\text { 3. } & \text { Penn } & 644 & 19.4 & 55,000 \\\text { 4. } & \text { Northwestern } & 640 & 22.6 & 54,000 \\\text { 5. } & \text { MIT } & 650 & 21.3 & 57,000 \\\text { 6. } & \text { Chicago } & 632 & 30.0 & 55,269 \\\text { 7. } & \text { Duke } & 630 & 18.2 & 53,300 \\\text { 8. } & \text { Dartmouth } & 649 & 13.4 & 52,000 \\\text { 9. } & \text { Virginia } & 630 & 23.0 & 55,269 \\\text { 10. } & \text { Michigan } & 620 & 32.4 & 53.300 \\\text { 11. } & \text { Columbia } & 635 & 37.1 & 52,000 \\\text { 12. } & \text { Cornell } & 648 & 14.9 & 50,700 \\\text { 13. } & \text { CMU } & 630 & 31.2 & 52,050 \\\text { 14. } & \text { UNC } & 625 & 15.4 & 50,800 \\\text { 15. } & \text { Cal-Berkeley } & 634 & 24.7 & 50,000 \\\text { 16. } & \text { UCLA } & 640 & 20.7 & 51,494 \\\text { 17. } & \text { Texas } & 612 & 28.1 & 43,985 \\\text { 18. } & \text { Indiana } & 600 & 29.0 & 44,119 \\\text { 19. } & \text { NYU } & 610 & 35.0 & 53,161 \\\text { 20. } & \text { Purdue } & 595 & 26.8 & 43,500 \\\text { 21. } & \text { USC } & 610 & 31.9 & 49,080 \\\text { 22. } & \text { Pittsburgh } & 605 & 33.0 & 43,500 \\\text { 23. } & \text { Georgetown } & 617 & 31.7 & 45,156 \\\text { 24. } & \text { Maryland } & 593 & 28.1 & 42,925 \\\text { 25. } & \text { Rochester } & 605 & 35.9 & 44,499\end{array}$$ The academic advisor wants to predict the typical starting salary of a graduate at a top business school using GMAT
score of the school as a predictor variable. A simple linear regression of SALARY versus GMAT using the 25 data points
in the table are shown below. $$\beta _ { 0 } = - 92040 \quad \hat { \beta } _ { 1 } = 228 \quad s = 3213 \quad r ^ { 2 } = .66 \quad r = .81 \quad \mathrm { df } = 23 \quad t = 6.67$$
-For the situation above, write the equation of the least squares line.

• A) SALARY = -92040 + 228 (GMAT)
• B) SALARY = 228 + 92040 (GMAT)
• C) GMAT = -92040 + 228 (SALARY)
• D) GMAT = 228 - 92040 (SALARY)

Recognize the role of peer-to-peer models and collaborative consumption in the digital economy.

Appreciate the significance of user-generated content and the 80-20 rule in content creation.

Understand the impact of social media on business practices and customer relations.

Recognize the importance of trust and security concerns in peer-to-peer platforms.

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