Question

18) If a B-school wants to predict or forecast the graduating GPA of entering freshmen (an unknown variable of interest), it might look at, among other things, their SAT scores ( a known variable). Which of the following statement does NOT represent this situation?

Answer 1

A statement that does not represent the use of SAT scores to forecast graduating GPA of entering freshmen would be one that suggests SAT scores are not useful or that other factors are more significant, which goes against the predictive model described by the provided texts.

Step-by-step explanation:

If a business school is interested in predicting or forecasting graduating GPA of entering freshmen using their SAT scores, the statement that does not represent this situation might be one that denies the usefulness of SAT scores in predicting college success or one that suggests other non-quantifiable factors might be more important. For instance, one could argue that personal motivation, social skills, or extracurricular involvement, none of which are measured by the SAT, are critical to college success. However, the provided texts demonstrate that, although imperfect, SAT scores and other measurable variables like high school GPA, can be part of a model to forecast student success, as evidenced by the provided formula GPA = 0.25 x combined SAT + 0.25 × class attendance + 0.50 × hours_spent_studying. This equation highlights the predictive value of SAT scores alongside other variables such as class attendance and study hours. However, it is crucial to note the limitations and potential biases associated with standardized testing that could impact the predictive validity of such models.