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GMAT Scores and Performance: Selecting Students into a Graduate Management School

Author

Listed:
  • Robert Marks

    (Australian Graduate School of Management, The University of New South Wales.)

  • Peter Watt

    (Hills Industries, South Australia. The authors would like to acknowledge the helpful comments of Christopher Adam and Richard Staelin.)

  • Philip Yetton

    (Australian Graduate School of Management, The University of New South Wales.)

Abstract

Research shows that scores on the Graduate Management Admission Test (GMAT) are positively correlated with academic performance at graduate management schools. This study replicates this finding on Australian data and extends the analysis to cover performance at the individual course level as well as for aggregate grade point average. This traditional treatment of the data while directed at the admission decision is in fact structured to explain variance in performance. A novel analysis is presented in parallel which investigates the trade–off between Type I errors (rejecting a student who would pass) and Type II errors (accepting a student who fails). This reveals that, while GMAT may be a good predictor of performance, it is an inefficient discriminator for selection purposes.

Suggested Citation

  • Robert Marks & Peter Watt & Philip Yetton, 1981. "GMAT Scores and Performance: Selecting Students into a Graduate Management School," Australian Journal of Management, Australian School of Business, vol. 6(2), pages 81-102, December.
    • Handle: RePEc:sae:ausman:v:6:y:1981:i:2:p:81-102
    DOI: 10.1177/031289628100600207
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    References listed on IDEAS

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    1. Olsen, Randall J, 1980. "Approximating a Truncated Normal Regression with the Method of Moments," Econometrica, Econometric Society, vol. 48(5), pages 1099-1105, July.
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    Cited by:

    1. Preston Bottger & Philip Yetton, 1982. "Student Assessment and GMAT: Quantitative Versus Verbal Components in Performance on Examinations and Assignments," Australian Journal of Management, Australian School of Business, vol. 7(1), pages 9-18, June.

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