A Study of the Top 75 MBA Programs Attempted to Predict

question 4

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
$\begin{array} { l r c c l } \text { Variables } & \text { Coefficient } & \text { Std Error } & \text { T } & \text { P } \\ \text { Constant } & 18.1849 & 10.3336 & 1.76 & 0.0826 \\ \text { Size } & 1.47494 & 0.14017 & 10.52 & 0.0000 \end{array}$





In addition, we are told that the coefficient of correlation was calculated to be $r = 0.7763$ . Interpret this result.

• A) There is a fairly strong negative linear relationship between the amount of tuition charged and the average starting salary variables.
• B) There is a fairly strong positive linear relationship between the amount of tuition charged and the average starting salary variables.
• C) There is almost no linear relationship between the amount of tuition charged and the average starting salary variables.
• D) There is a very weak positive linear relationship between the amount of tuition charged and the average starting salary variables.

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