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
R-Squared Resid. Mean Square (MSE)
Adjusted R-Squared Standard Deviation Interpret the estimated slope of the regression line.
A) For every $1000 increase in the tuition charged by the MBA program, we estimate that the average starting salary will decrease by $1474.94.
B) For every $1000 increase in the tuition charged by the MBA program, we estimate that the average starting salary will increase by $1474.94.
C) For every $1474.94 increase in the tuition charged by the MBA program, we estimate that the average starting salary will increase by $18,184.90.
D) For every $1000 increase in the average starting salary, we estimate that the tuition charged by the MBA program will increase by $1474.94.
Correct Answer:
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