Refer to the data given in Table 2-12 (found on the textbook's Web site) to answer the following questions:
a. Develop a multiple regression model to explain the average starting pay of MBA graduates, obtaining the usual regression output.
b. If you include both GPA and GMAT scores in the model, a priori, what problem(s) may you encounter and why?
c. If the coefficient of the tuition variable is positive and statistically significant, does that mean it pays to go to the most expensive business school? What might the tuition variable be a proxy for?
d. Suppose you regress GMAT score on GPA and find a statistically significant positive relationship between the two. What can you say about the problem of multicollinearity?
e. Set up the ANOVA table for the multiple regression in part (a) and test the hypothesis that all partial slope coefficients are zero.
f. Do the ANOVA exercise in part (e), using the R value.