How valid is the GMAT? Does it actually predict the academic achievement of MBA students?
AnswerThe predictive validity of the GMAT has been established by analyzing the statistical relationship between GMAT scores and first-year (or midprogram) grade point average. Analyses of the relationship between a combination of three of the GMAT variables—Verbal, Quantitative, and AWA—and first-year (or midprogram) grade point average have been conducted at numerous schools since the inception of the GMAT. The average (represented by the median) statistical relationship is +0.41 out of a possible 1.00. When undergraduate grade point average was added to the three GMAT variables the predictive power increased to +0.47. Thus, a combination of the GMAT variables does contribute to the prediction of how well candidates for admission might perform academically in an MBA program. Other variables such as motivation, time spent studying or otherwise engaged in learning also contribute greatly to student achievement. The GMAT is an extremely useful predictive tool, yet it is only one of many
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