Case 3. Promotion and MBA:Does an MBA Pay Off?

Against the popularity of MBA education in the world, there have been debates on

whether MBA education would increase promotion prospects of the students.

Examine the following hypothetical results of Firm A and B. In the past ten year

record, Firm A,among 50 MBA-holders, 20 are promoted as executives, while among

30 non-MBA-holders, 10 are promoted. For firm B, among 40 MBA-holders, 30 are

promoted, while out of 70 non-MBA-holders, 50 are promoted. Calculate promotion

rates of MBA and non-MBA-holders for firm A and B separately and then pool firm A

and B together. What conclusions you draw from the calculation? Does holding an

MBA degree increase chances for promotion? How do you analyze this kind of statistic

in decision making? What data and with what method should you use when you wish to

answer the question of MBA and promotion?