An Academic Advisor Wants to Predict the Typical Starting Salary

Multiple Choice

An academic advisor wants to predict the typical starting salary of a graduate at a top business school using the GMAT score of the school as a predictor variable. A simple linear regression of SALARY versus GMAT was created from a set of 25 data points.

Which of the following is not an assumption required for the simple linear regression analysis to be valid?

A) The errors of predicting SALARY are normally distributed.
B) The errors of predicting SALARY have a mean of 0.
C) The errors of predicting SALARY have a variance that is constant for any given value of GMAT.
D) SALARY is independent of GMAT.