It is common practice in many MBA programs to require applicants to arrange for a letter of reference. Some universities have their own forms in which referees assess the applicant using the following categories:
5: The candidate is in the top 5% of applicants.
4: The candidate is in the top 10% of applicants, but not in the top 5%.
3: The candidate is in the top 25% of applicants, but not in the top 10%.
2: The candidate is in the top 50% of applicants, but not in the top 25%.
1: The candidate is in the bottom 50% of applicants.
However, the question arises, Are the referees’ ratings related to how well the applicant performs in the MBA program? To answer the question, a random sample of recently graduated MBAs was drawn.
For each, the rating of the referee and the MBA grade-point average (GPA) were recorded. Do these data present sufficient evidence to infer that the letter of reference and the MBA GPA are related?