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A Study of the Top MBA Programs Attempted to Predict y=y =

Question 64

Multiple Choice

A study of the top MBA programs attempted to predict y=y = the average starting salary (in $1000\$ 1000 's) of graduates of the program based on x=x = the amount of tuition (in $1000\$ 1000 's) charged by the program. After first considering a simple linear model, it was decided that a quadratic model should be proposed. Which of the following models proposes a 2nd-order quadratic relationship between xx and yy ?


A) E(y) =β0+β1x1+β2x2+β3x1x2E ( y ) = \beta _ { 0 } + \beta _ { 1 } x _ { 1 } + \beta _ { 2 } x _ { 2 } + \beta _ { 3 } x _ { 1 } x _ { 2 }
B) E(y) =β0+β1x1E ( y ) = \beta _ { 0 } + \beta _ { 1 } { } ^ { x } 1
C) E(y) =β0+β1x1+β2x12E ( y ) = \beta _ { 0 } + \beta _ { 1 } x _ { 1 } + \beta _ { 2 } x _ { 1 } ^ { 2 }
D) E(y) =β0+β1x1+β2x12+β3x13E ( y ) = \beta _ { 0 } + \beta _ { 1 } x _ { 1 } + \beta _ { 2 } x _ { 1 } ^ { 2 } + \beta _ { 3 } x _ { 1 } ^ { 3 }

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