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Eugen Tarnow

 

    College Data: Admitting higher SAT scores yields higher eventual earnings, especially for the SAT math score

    Eugen G Tarnow  September 22 2015 12:00:17 PM
    By Eugen Tarnow, Ph.D.
    Avalon Business Systems, Inc.
    http://AvalonAnalytics.com

    One can find lots of interesting things in the new college dataset.  For example, how does the college average SAT score impact eventual earnings?  For every average point on the SAT verbal test, the income increases by $55 per year (see Fig. 1).  100 points, $5,500 per year.  The relationship is even more important for the SAT math score: 100 points, $6,900 per year (see Fig. 2).  So if colleges want better earning alumnae, they should admit higher SAT scoring students.  And the math score is more important than the verbal score.

    But in general, colleges tend to not care.  In fact, the average SAT math score is skewed towards low scores (see Fig. 3).  Perhaps a current student is more important to the college income than the average alumnus income.

    Image:College Data: Admitting higher SAT scores yields higher eventual earnings, especially for the SAT math score
    Fig. 1.  Mean earnings six year after initial enrollment as a function of the average SAT verbal score.


    Image:College Data: Admitting higher SAT scores yields higher eventual earnings, especially for the SAT math score
    Fig. 2.  Mean earnings six year after initial enrollment as a function of the average SAT math score.


    Image:College Data: Admitting higher SAT scores yields higher eventual earnings, especially for the SAT math score
    Fig. 3.  Distribution of average SAT math scores of admitted students.  The distribution is skewed towards low math scores.



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