Question: How important is GPA in determining the starting salary of recent business school graduates? Does graduating from a business school increase the starting salary? The director of undergraduate studies at a major university wanted to study these questions. She gathered the following sample information on 15 graduates last spring to investigate these questions.

The salary is reported in $000, GPA on the traditional 4-point scale. A 1 indicates the student graduated from a school of business; a 0 indicates that the student graduated from one of the other schools. Run regression and interpret your results. What starting salary would you estimate for a student with a GPA of 3.00 who graduated from a college of business?