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June 29, 2006

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GRE or GMAT at Stanford GSB

Businessweek reports in "Stanford Smiles on GRE Scores" that Stanford GSB will allow students to submit GRE or GMAT results. The move, according to Director of MBA Admissions Derrick Bolton, is an attempt to lower the cost of applying to MBA programs and increase "socio-economic diversity" at top MBA programs.

Kerry MIller, the article’s author, speculates that the move "may also allow Stanford to admit more women and ethnic minorities like blacks and Latinos—who on average do not perform as well on the GMAT exam—without affecting their overall GMAT score, and therefore, their overall ranking by information sources such as BusinessWeek and U.S. News & World Report."

There is no question that the GMAT is an expensive exam: $250 vs $130-175 for the GRE depending on where the test is administered.  The key question in my mind is referenced in this article by Rose Martinelli of Chicago GSB: Does the GRE predict success in business school? 

I am surprised that Stanford would accept the GRE without validating its predictive value at a graduate school of business. The GMAT is expensive, but it has been extensively validated. If the GRE isn’t predictive, then it’s a complete waste of time and money for the schools and applicants. Why not just do away with the GMAT entirely or make it optional?

Article by Linda Abraham / MBA Admissions / GMAT, Stanford GSB

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