A Study of the Top MBA Programs Attempted to Predict $75 \quad$

question 122

Multiple Choice

A study of the top MBA programs attempted to predict the average starting salary (in $1000ʹs) of graduates of the program based on the amount of tuition (in $1000ʹs) charged by the program and
The average GMAT score of the programʹs students. The results of a regression analysis based on a
Sample of 75 MBA programs is shown below: Least Squares Linear Regression of Salary
Predictor


Cases Included $75 \quad$ Missing Cases 0
The global- $\mathrm { f }$ test statistic is shown on the printout to be the value $\mathrm { F } = 84.68$ . Interpret this value.

• A) There is insufficient evidence, at \(\alpha = 0.05\), to indicate that the interaction between average tuition and average GMAT score is a useful predictor of the average starting salary of graduates of MBA programs.
• B) There is sufficient evidence, at \(\alpha = 0.05\), to indicate that the interaction between average tuition and average GMAT score is a useful predictor of the average starting salary of graduates of MBA programs.
• C) There is insufficient evidence, at \(\alpha = 0.05\), to indicate that at least one of the variables proposed in the interaction model is useful at predicting the average starting salary of graduates of MBA programs.
• D) There is sufficient evidence, at \(\alpha = 0.05\), to indicate that at least one of the variables proposed in the interaction model is useful at predicting the average starting salary of graduates of MBA programs.

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Definitions:

Rational Risk-averse Investor

An investor who prioritizes minimizing risk over achieving potentially higher returns when making investment decisions, acting based on logical analysis.

Well-diversified Portfolio

A Well-diversified Portfolio is an investment strategy that involves spreading investments across various asset classes and sectors to reduce risk while improving potential returns.

Diversification

An investment strategy aimed at reducing risk by allocating investments among various financial instruments, industries, and other categories.

Economic Uncertainty

Situations where the future economic conditions or financial market trends cannot be predicted with certainty.