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

Multiple Choice

A study of the top MBA programs attempted to predict $y =$ the average starting salary (in $\$ 1000$ 's) of graduates of the program based on $x =$ the amount of tuition (in $\$ 1000$ '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 $x$ and $y$ ?

A) $\mathrm { E } ( \mathrm { y } ) = \beta _ { 0 } + \beta _ { 1 } \mathrm { x } _ { 1 }$
B) $\mathrm { E } ( \mathrm { y } ) = \beta _ { 0 } + \beta _ { 1 } \mathrm { x } _ { 1 } + \beta _ { 2 } \mathrm { x } _ { 1 } ^ { 2 }$
C) $\mathrm { E } ( \mathrm { y } ) = \beta _ { 0 } + \beta _ { 1 } \mathrm { x } _ { 1 } + \beta _ { 2 } \mathrm { x } _ { 1 } ^ { 2 } + \beta _ { 3 } \mathrm { x } _ { 1 } ^ { 3 }$
D) $\mathrm { E } ( \mathrm { y } ) = \beta _ { 0 } + \beta _ { 1 } \mathrm { x } _ { 1 } + \beta _ { 2 } \mathrm { x } _ { 2 } + \beta _ { 3 } \mathrm { x } _ { 1 } \mathrm { x } _ { 2 }$