The economic return to earning an MBA. What are the economic rewards (e.g., higher salary) to obtaining an MBA degree? This was the question of interest in an article published in the International Economic Review (August 2008). The researchers made inferences based on wage data collected for a sample of 3,244 individuals who sat for the Graduate Management Admissions Test (GMAT). (The GMAT exam is required for entrance into most MBA programs.) The following sampling scheme was employed. All those who took the GMAT exam in any of four selected time periods were mailed a questionnaire. Those who responded to the questionnaire were then sent three follow-up surveys (one survey every 3 months). The final sample of 3,244 represents only those individuals who responded to all four surveys. (For example, about 5,600 took the GMAT in one time period; of these, only about 800 responded to all four surveys.)

A. For this study, describe the population of interest.

b. What method was used to collect the sample data?

c. Do you think the final sample is representative of the population? Why or why not? Comment on potential biases in the sample.

Step by step solution

01

Specifying the population of interest

The population comprises the set of all the items that have some or other similar property. For the researcher, the population of interest isthe set of all the individuals who gave the GMAT exam in the selected periods.

02

Determining the method used in data collection

The method used to gather data is a survey part ofan observational study. In the observational study, the researcher carefully considers the units in their natural settings and analyzes the variable. In this case, the survey is sent to people who gave the exam; the researcher records the replies to the questions asked in the survey and uses this for analyzing the sample.

03

Step 3: Determining the conditions of a representative sample

Yes, the final sample that comprises 3244 individuals who took the exam indicates the representative sample because there was no biasness in the selection of the individual. Those individuals who answered all four surveys were part of the sample, and there is no personal biasness of the researcher involved in selection. Thus, one can conclude it is representative of the population.

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