Is an MBA a golden ticket? Pursuing an MBA is a major personal investment. Tuition and expenses associated with business school programs are costly, but the high costs come with hopes of career advancement and big salaries. A prospective MBA student would like to examine the factors that impact starting salary upon graduation and decides to develop a model that uses program per-year tuition as a predictor of starting salary. Data were collected for 37 full-time MBA programs offered at private universities. The data are stored in FTMBA . (Data extracted from "U.S. News Business School Compass," available at bit.ly/1k- T08Jg.)
a. Construct a scatter plot.
b. Assuming a linear relationship, use the least-squares method to determine the regression coefficients b0 and b1.
c. Interpret the meaning of the slope, b1, in this problem.
d. Predict the mean starting salary upon graduation for a program that has a per-year tuition cost of $50,450.
e. What insights do you gain about the relationship between program per-year tuition and starting salary upon graduation?