Graduate Management Admissions Test (GMAT)

The Graduate Management Admissions Test (GMAT) is created and administered by the Educational Testing Service (ETS). Admissions officers use the GMAT to measure academic ability. In fact, ETS data has shown that GMAT scores are consistently good, though imperfect, predictors of academic success in the first year of business school. GMAT scores are also used by admissions committees as a useful guide in comparing the credentials of candidates from widely varying backgrounds.

Standardized = Predictable

The exam itself measures general verbal, mathematical, and analytical writing skills. It does not test business competence nor specific subject knowledge. The GMAT is a standardized test. Standardized tests, by definition, are predictable. Knowing the format and structure of the exam and applying certain strategies to address them can significantly increase score levels. In short, targeted preparation is the key to success in the GMAT.

Snapshot: GMAT

The GMAT consists of three sections:

• Analytical Writing Assessment
• Quantitative
• Verbal

The Quantitative and Verbal subscores contribute to your total score.

Analytical Writing Assessment (AWA)

• Two 30-minute typewritten essays
• Topics tested include: Analysis of an argument and analysis of an issue.

Quantitative

• 75 minutes
• Maximum of 37 multiple-choice questions
• Question types include: Problem solving and data sufficiency
• Topics tested include: Arithmetic, algebra, and geometry.

Verbal

• 75 minutes
• Maximum of 41 multiple-choice questions
• Question types include: Reading comprehension, sentence correction, and critical reasoning
• Topics tested include: Speed reading, grammar, and analytical reasoning.

The CAT

The computer adaptive test (CAT) is more than just a computerized version of a paper and pencil test. In this format, the computer actually adapts to your performance as you’re taking the test.

During the administration of the test, you will see one question at a time and must answer it in order to move to the next question. The first question is of average difficulty. The computer selects subsequent questions based on whether you’ve answered previous ones correctly or incorrectly and whether you’ve seen the required mix of concepts and question types.

Test Registration

The GMAT is created and administered by the Educational Testing Service (ETS). To register and schedule your GMAT, follow the steps below:

1. Obtain a copy of the GMAT Bulletin.

This booklet contains information on scheduling, pricing, repeat testing, cancellation policies, and more. You can receive it by:

• downloading it from www.gmat.org.
• or calling regional ETS international registration centers:
  Europe: CITO (Netherlands) +31.26.352.15.77
  USA: ETS 1-800-GMAT-NOW
  Latin America Sylvan Learning Systems (USA) +1.410.843.8160
  Middle East: Amideast/Sylvan Prometric (Egypt) +20.2.337.8973
  Australia: Sylvan Learning Systems +61.2.9903.9797
  China: NEEA/Sylvan Prometric +86.10.6251.0901
  India: Sylvan Testing Services +91.11.699.0637

2. Register for and schedule your exam by calling.

• The exam is offered the last three weeks of every month.
• You may schedule a few days in advance.

Scoring on the GMAT

You will receive four scores on the GMAT:

• An overall score, ranging from 200 to 800.
• A math percentile, comparing you to other test takers.
• A verbal percentile, comparing you to other test takers.
• A score for the Analytical Writing Assessment, ranging from 0 to 6.

Your GMAT score is valid for five years.

Percentile Rank

Each of the aforementioned scores are accompanied by a percentile rank. The percentile rank highlights what proportion of test takers scored lower than you on the test. The higher the percentile rank, the better you did. For example, if you received a percentile rank of 56, you did better than 56 percent of test takers. This number tells business schools exactly where you fell with respect to other candidates who took the GMAT.

The Essay

Each essay is given a separate grade on a 0-6 scale by two different graders – a human and a computer named the “e-rater.” These grades are assigned holistically, taking into account all aspects of content, writing style, and grammar. If the two grades for an essay agree, that score will be assigned. If the two scores are markedly different, then a third scorer, a person, will read the essay to determine its grade. In addition, business schools may receive copies of your typewritten essays.

(courtesy : topmba.com)

The two-year MBA – Is it worth it?

Expect to pay between $80,000 and $130,000 for a two-year MBA program. It isn’t cheap, and the fact is the more you pay the greater chance your degree will be recognized. Top tier schools like Harvard or Wharton have higher tuition fees than less prestigious business schools.

Return on Investment (ROI)

There is no doubt that such a program is costly, but don’t forget, you will likely receive an impressive return on investment (ROI). Having a rough idea of how long it will take to regain the money spent on your program can be reassuring. Tools like QS Scorecard can be utilized to provide customized results pertaining to your particular situation. For example, an Indian MBA hopeful wanting to study in the UK may find Lancaster, Oxford, and Ashridge will likely provide the highest ROI; that is, twenty years following business school graduation, the percentage of the amount invested in tuition costs will be highest after attending one of these schools, as opposed to others.

You can get a rough idea of the time it will take to regain your business school expenses by examining the ROI of three different schools offering different programs: a two-year program at a top US school, a two-year program at a less competitive school, and a one-year program at a business school in the European Union (EU). These programs are used to represent the normal range of international programs available throughout the world. Harvard, Rutgers, and INSEAD will be used to demonstrate the above. The following results are based on a female with two years work experience and a pre-MBA salary of US$40,000, employed by a company with fewer than 5,000 employees.

Top US school Harvard will require an investment of approximately US$147,000, yet the graduate can expect about a 47% salary increase (this figure will vary depending on the graduate’s post-MBA occupation). Therefore, we can predict an approximate time period of seven years to ‘break even’; that is, to regain the cost invested in the MBA program.

Attending Rutgers will cost the student approximately US$108,000 for the two-year program. In comparison to Harvard graduates, the MBA graduate from this university can expect about a 69% increase in her salary, resulting in only a five-year period to ‘break even’.

Graduates of the one-year MBA program at INSEAD in France can expect approximately a 55% increase in their salary, post-MBA। As the tuition cost is US$90,000, we can conclude that it would take about four years to ‘break even’. Cranfield, in the UK, yielded very similar results.

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So is it worth it?

The two-year MBA has its advantages and disadvantages but the bottom line is that most MBA programs will provide its graduates with a respectable return on investment and greater career opportunities। If you have a bit more money (a scholarship or a good loan package!) and two years to spend studying, why not invest in a comprehensive program that will prove enriching in the short term and give you time to fully develop new skills and meet contacts who may become lifelong friends or business associates.
(courtsey : topmba.com)