Table 2-12, found on the textbook's Web site, gives data on average starting pay (ASP), grade point average (GPA) scores (on a scale of 1 to 4), GMAT scores, annual tuition, percent of graduates employed at graduation, recruiter assessment score (5.0 highest), and percent of applicants accepted in the graduate business school for 47 well-regarded business schools in the United States for the year 2007-2008.
a. Using a bivariate regression model, find out if GPA has any effect on ASP.
b. Using a suitable regression model, find out if GMAT scores have any relationship to ASP.
c. Does annual tuition have any relationship to ASP? How do you know?
If there is a positive relationship between the two, does that mean it pays to go to the most expensive business school? Can you argue that a high-tuition business school means a high-quality MBA program? Why or why not?
d. Does the recruiter perception have any bearing on ASP?