MBA Salary

Case Study
Every year, MBA programs across the country advertise for prospective students, promoting the academic
excellence of their programs, the uniqueness of their offerings, the quality of their faculty and a variety of
other factors. In a competitive market, the goal is to attract the brightest and the best. Many schools claim
that graduates of their programs will earn large salaries upon graduation, a point that clearly ranks high on
the list of many students’ decision-making criteria. In fact, the Financial Times’ rating of MBA programs
uses graduates’ salaries as a large component of its rating system. Marie Daer, an aspiring MBA applicant,
was very interested in the starting salaries of graduating students. Surprisingly, she was able to track down a
dataset from a prominent – but anonymous – MBA school. Daer was able to learn the following about the
data. Three months after graduation, the students in the class of 2012 were sent a survey. The survey
asked about their satisfaction with the MBA program as well as their starting salary. The survey was not
anonymous, and the responses of these students were added to the information already on file about
them. These data included the graduates’ age, sex, years of work experience, GMAT information, fall
and spring MBA average, quartile ranking, and their native language. Daer was pleased to have located the
data. She wondered whether it could answer some important questions that would help her decide
whether to enroll in the MBA program at this particular school. In particular, she wondered about
starting salaries, whether gender and/or age made a difference, and whether students liked this particular
program. She also wondered whether her GMAT score made a difference in marks. Since her native language
was not English, Daer had a relatively low GMAT.
1. How much can students expect to make on
graduation?
SALARY
   
Mean 39025.68978 Including 999, 998 :
Standard Error 3078.096371
Median 999
Mode 0
Standard Deviation 50951.56103 As seen from the table, the salary a
Sample Variance 2596061572
Kurtosis -1.03471835 student can make around graduation is
Skewness 0.706482928
Range 220000 RS.39025 and the expected median
Minimum 0
Maximum 220000 salary is RS.999.
Sum 10693039
Count 274
Largest(1) 220000
Smallest(1) 0
Confidence Level (95.0%) 6059.82253
SALARY
   
Mean 54985.31606 Excluding 999, 998 :
Standard Error 3825.993047
Median 85000
Mode 0
Standard Deviation
Sample Variance
53152.39411
2825177000
As seen from the table, the salary a
Kurtosis
Skewness
-1.436195284
0.10597753
student can make around graduation is
Range
Minimum
220000
0
RS.54985 and the expected median
Maximum
Sum
220000
10612166
salary is RS.85000.
Count 193
Largest(1) 220000
Smallest(1) 0
Confidence Level (95.0%) 7546.375262
2. Draw the histogram of salary with comments
As per the histogram , we
can see that only 193
people have been
included.
The maximum number of
people who have received
salaries are in the range of
1,00,000 - 1,19,000 and
the value is 47 since 90
people in the first bracket
are the people who
haven’t been placed.
3. Shows measures of dispersion in tabulated form
DISPERSION INCLUDING 999,998
  AGE GMAT TOTAL GMAT QUANT GMAT VERBAL GMAT PERCENTILE QUARTER WORK EX SALARY SATISFACTION

Mean 27.35766 619.4526 80.64234 78.32117 84.19708 2.478102 3.872263 39025.69 172.1788
Standard Error 0.22417 3.476033 0.898241 1.018529 0.847077 0.067058 0.19528 3078.096 22.45006
Median 27 620 83 81 87 2 3 999 6
Mode 25 630 99 81 89 2 2 0 6
Standard Deviation 3.710666 57.53858 14.86853 16.85966 14.02162 1.110009 3.232464 50951.56 371.6146
Sample Variance 13.76904 3310.688 221.0731 284.2481 196.6057 1.232119 10.44882 2.6E+09 138097.4
Kurtosis 6.657602 0.10217 0.347485 0.803365 9.301954 -1.339 10.09996 -1.03472 1.201873
Skewness 2.185272 -0.0064 -0.92652 -1.05384 -2.30289 0.023203 2.810399 0.706483 1.786928
Range 26 340 71 83 99 3 22 220000 997
Minimum 22 450 28 16 0 1 0 0 1
Maximum 48 790 99 99 99 4 22 220000 998
Sum 7496 169730 22096 21460 23070 679 1061 10693039 47177
Count 274 274 274 274 274 274 274 274 274
Largest(1) 48 790 99 99 99 4 22 220000 998
Smallest(1) 22 450 28 16 0 1 0 0 1
Confidence Level(95.0%) 0.441321 6.843237 1.768359 2.00517 1.667633 0.132017 0.384447 6059.823 44.19724
DISPERSION EXCLUDING 999,998
  AGE GMAT TOTAL GMAT QUANT GMAT VERBAL GMAT PERCENTILE QUARTER WORK EX SALARY SATISFACTION

Mean 27.58549 615.2332 79.34715 78.12953 83.48187 2.393782 4.103627 54985.32 5.761658
Standard Error 0.303568 4.069952 1.090192 1.159037 0.973779 0.079478 0.265492 3825.993 0.055717
Median 27 610 82 81 87 2 3 85000 6
Mode 25 620 89 87 87 1 2 0 6
Standard Deviation 4.2173 56.54158 15.14543 16.10185 13.52817 1.104141 3.688331 53152.39 0.774046
Sample Variance 17.78562 3196.951 229.3841 259.2696 183.0114 1.219128 13.60379 2.83E+09 0.599147
Kurtosis 4.785578 -0.26113 0.30502 0.432973 7.351944 -1.31016 7.344014 -1.4362 0.002421
Skewness 1.957469 0.081952 -0.89263 -0.91408 -1.89563 0.131736 2.506003 0.105978 -0.17173
Range 26 310 71 77 99 3 22 220000 4
Minimum 22 450 28 22 0 1 0 0 3
Maximum 48 760 99 99 99 4 22 220000 7
Sum 5324 118740 15314 15079 16112 462 792 10612166 1112
Count 193 193 193 193 193 193 193 193 193
Largest(1) 48 760 99 99 99 4 22 220000 7
Smallest(1) 22 450 28 22 0 1 0 0 3

Confidence Level(95.0%) 0.598756 8.027559 2.150291 2.28608 1.920678 0.156762 0.523655 7546.375 0.109896
4. Are there any variables that affect how much
students can expect to make?
GENDER BASED QUARTILE WISE MEAN SALARY
In the below pivot chart, we can infer that first quartile
80000 students with English language are getting higher
70000
salaries while in the
60000
fourth quartile students with other language are getting
MEAN SALARY

50000
40000 higher salaries.
30000
20000 LANGUAGE BASED QUARTILE WISE MEAN SALARY
10000
90000
0
1F 1M 2F 2M 3F 3M 4F 4M 80000
QUARTILE WISE GENDER 70000

MEAN SALARY
60000
50000
40000
In the above pivot chart, we can infer that first 30000
quartile males are getting higher salaries while in the 20000
fourth quartile females are getting higher salaries. 10000
0
QUARTILE WISE LANGUAGE
WORK EXPERIENCE QUARTILE WISE MEAN SALARY In the below pivot chart, we can infer that students
250000
in the age group of 20-29 and 30-39 are getting
moderate salaries in first, second and third quartile
200000 while in the fourth quartile students in 40-49 age
MEAN SALARY

bracket are getting higher salaries.

150000

100000
AGE BASED QUARTILE WISE MEAN SALARY
50000 250000
0
200000
QUARTILE WISE WORK EXP.

MEAN SALARY
150000

In the above pivot chart, we can infer that students 100000

with work experience of 0-9 and 10-19 years are
getting moderately paid in the first two quartiles 50000
while in the fourth quartile students with work
experience 10-19 are getting higher salaries. 0
QUARTILE WISE AGE
5. Do grades and gender make a difference?
GMAT SCORE AND GENDER IMPACT ON MEAN SALARY
250000

We can infer here that females are

200000 getting paid higher than males in the
450-549 GMAT score bracket and 650-
749 bracket.
MEAN SALARY

150000
F
M
100000

50000

0
GMAT SCORE
GMAT IMPACT ON MEAN SALARY MEAN SALARIES BY GENDER
70000 Average of salary
60000 57000
56560.3
56500
50000
MEAN SALARY

56000

MEAN SALARY
40000 55500
30000 55000
54500 54373.45
20000
54000
10000 53500
0 53000
450-549 550-649 650-749 750-849 F M
GMAT SCORE GENDER
6. Other inferences
KASHISH KHETRAPAL
SANJANA UDUPA
ANANYA BHARGAVA
MANAN DHAMI

THANK YOU

PRASANNA VENKATESAN
AYUSHI SRIVASTAVA
SAMBIT KUMAR SAHOO
RAMESH ASWATHY