An Academic Advisor Wants to Predict the Typical Starting Salary $$\hat { \beta } _ { 0 } = - 92040 \hat { \beta } 1 = 228 s = 3213 r ^ { 2 } = .66 r = .81 \mathrm { df } = 23 \quad t = 6.67$$

question 45

Multiple Choice

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. $$\hat { \beta } _ { 0 } = - 92040 \hat { \beta } 1 = 228 s = 3213 r ^ { 2 } = .66 r = .81 \mathrm { df } = 23 \quad t = 6.67$$
Give a practical interpretation of $r = .81$ .

• A) \(81 \%\) of the sample variation in SALARY can be explained by using GMAT in a straight-line model.
• B) We can predict SALARY correctly \(81 \%\) of the time using GMAT in a straight-line model.
• C) There appears to be a positive correlation between SALARY and GMAT.
• D) We estimate SALARY to increase \(81 \%\) for every 1 -point increase in GMAT.

---

Definitions:

Immune System

A complex network of cells, tissues, and organs that work together to defend the body against attacks by foreign invaders, such as viruses and bacteria.

Stress

A physical or emotional response to external or internal challenges or demands.

Vulnerable To Illness

A state or condition in which an individual has a reduced ability to resist or recover from diseases or health conditions.

Noncompliance

The act of not following, obeying, or adhering to a rule, order, or set of instructions.