A Study of the Top MBA Programs Attempted to Predict

question 64

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
$\begin{array} { l c c c c c c c } \text { Variables } & \text { Coefficient } & \text { Std Error } & \text { T } & \text { P } & \text { VIF } \\ \text { Constant } & - 203.402 & 51.6573 & - 3.94 & 0.0002 & 0.0 \\ \text { Gmat } & 0.39412 & 0.09039 & 4.36 & 0.0000 & 2.0 \\ \text { Tuition } & 0.92012 & 0.17875 & 5.15 & 0.0000 & 2.0 & \\ & & & & & & \\ \text { R-Squared } & 0.6857 & \text { Resid. Mean Square (MSE) } & 427.511 \\ \text { Adjusted R-Squared } & 0.6769 & \text { Standard Deviation } & 20.6763 \end{array}$
Identify the test statistic that should be used to test to determine if the amount of tuition charged by a program is a useful predictor of the average starting salary of the graduates of the program.

• A) \(t = 5.15\)
• B) \(t = 20.67\)
• C) \(\mathrm { t } = - 3.94\)
• D) \(t = 4.36\)

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Definitions:

Money Supply

The sum of monetary holdings in an economy, which includes cash, coins, and the balances in checking and saving accounts, at a specific instant.

Standard of Value

A criterion that allows the value of various goods and services to be compared.

Store of Value

A store of value is an asset that maintains its value over time without depreciating, allowing it to be saved, retrieved, and exchanged at a later time.

Medium of Exchange

A mediating tool or mechanism that enables the buying, selling, or exchanging of products among individuals or groups.