A Study of the Top MBA Programs Attempted to Predict

Multiple Choice

A study of the top MBA programs attempted to predict the average starting salary (in $1000's) of graduates of the program based on the amount of tuition (in $1000's) charged by the program and The average GMAT score of the program's students. The results of a regression analysis based on a Sample of 75 MBA programs is shown below: Least Squares Linear Regression of Salary



The model was then used to create 95% confidence and prediction intervals for y and for E(Y) when The tuition charged by the MBA program was $75,000 and the GMAT score was 675. The results are Shown here:

95% confidence interval for E(Y) : ($126,610, $136,640)
95% prediction interval for Y: ($90,113, $173,160)

Which of the following interpretations is correct if you want to use the model to estimate E(Y) for All MBA programs?

A) We are 95% confident that the average starting salary for graduates of a single MBA program that charges $75,000 in tuition and has an average GMAT score of 675 will fall between
$90,113 and $173,16,30.
B) We are 95% confident that the average starting salary for graduates of a single MBA program that charges $75,000 in tuition and has an average GMAT score of 675 will fall between
$126,610 and $136,640.
C) We are 95% confident that the average of all starting salaries for graduates of all MBA programs that charge $75,000 in tuition and have an average GMAT score of 675 will fall
Between $126,610 and $136,640.
D) We are 95% confident that the average of all starting salaries for graduates of all MBA programs that charge $75,000 in tuition and have an average GMAT score of 675 will fall
Between $90,113 and $173,16,30.