Factors predicting academic and economic outcome of a business management program

This study was aimed at exploring predictive validity of factors routinely used in admission decisions made for a business management program (Masters in Business Administration: MBA). Two outcomes of the program were predicted [grade point average (GPA), & salary offer] using three factors (demographic, academic records, & entrance exam) analyzed for a batch of students enrolled in year 2009 (n=290). Regression analysis was used on gender-split data (female=30). Results for individual factors predicting GPA were (adjusted R2): (a) demographic factor (age & work experience), work experience was a significant predictor (female=.27), (b) academic record, (percentage in 10th & 12th standard), both variables were significant (male=.15, female=.43), and (c) entrance exam (scores on verbal, quantitative, & data interpretation sections), quantitative and data interpretation sections were significant predictors for male (.35) whereas verbal section was significant for female students (.51). Allvariables-combined model explained 39% of variance in GPA of male students. Adding GPA to above variables explained 25% of variance in salary offer received by male students. Results are discussed to compare (i) gender-wise predictive validity of factors, and (ii) academic versus economic outcome of a business education program.