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A Study of the Top MBA Programs Attempted to Predict

Question 14

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
 Variables  Coefficient  Std Error  T  P  VIF  Constant 203.40251.65733.940.00020.0 Gmat 0.394120.090394.360.00002.0 Tuition 0.920120.178755.150.00002.0 R-Squared 0.6857 Resid. Mean Square (MSE)  427.511 Adjusted R-Squared 0.6769 Standard Deviation 20.6763\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=5.15t = 5.15
B) t=20.67t = 20.67
C) t=3.94\mathrm { t } = - 3.94
D) t=4.36t = 4.36

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