A Study of the Top 75 MBA Programs Attempted to Predict

Multiple Choice

A study of the top 75 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. The results of a simple linear regression analysis are shown below: Least Squares Linear Regression of Salary Predictor
$\begin{array} { l r r c l } \text { Variables } & \text { Coefficient } & \text { Std Error } & \text { T } & \text { P } \\ \text { Constant } & 18.1849 & 10.3336 & 1.76 & 0.0826 \\ \text { Size } & 1.47494 & 0.14017 & 10.52 & 0.0000 \end{array}$

R-Squared $\quad 0.6027 \quad$ Resid. Mean Square (MSE) $532.986$
Adjusted R-Squared $0.5972$ Standard Deviation $\quad 23.0865$ In addition, we are told that the coefficient of correlation was calculated to be r = 0.7763. Interpret this result.

A) There is a fairly strong negative linear relationship between the amount of tuition charged and the average starting salary variables.
B) There is a fairly strong positive linear relationship between the amount of tuition charged and the average starting salary variables.
C) There is a very weak positive linear relationship between the amount of tuition charged and the average starting salary variables.
D) There is almost no linear relationship between the amount of tuition charged and the average starting salary variables.