A Study of the Top 75 MBA Programs Attempted to Predict

question 79

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.
We are told that the coefficient of correlation was calculated to be r = 0.7763. Use this information
To calculate the test statistic that would be used to determine if a positive linear relationship exists
Between the two variables.

• A)t = 0.6027
• B)t = 10.52
• C)t = 1.475
• D)t = 1.760

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Definitions:

Stock

Shares of ownership in a corporation, representing a claim on part of the corporation's assets and earnings.

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return.

Interest Rate

The portion of a loan incurred as interest by the borrower, generally stated as an annual percentage of the loan yet to be repaid.

Payments

Transactions of money or its equivalent from one individual, business, or entity to another as a form of exchange or settlement.