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06 Jul 2016, 09:27
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I think we can all agree that we want a higher GMAT score as it ultimately translates to financial benefits. A 650 can get you into a decent MBA program, but a 700 can get you into a very good program, and a 750 can get you a lot of scholarship money at a very good program and a spot at a top program, assuming the rest of your application is on par. Let's say the difference between a 750 and a 700 is 100k in scholarship money, can we conclude that the value of a 10-point GMAT score increase is approximately 20k? This is being conservative since if the candidate decides to take a spot at HBS over 100k in scholarship money, that can imply that the value of the score difference is over 100k.
I think the difference between a 650 and a 700 is also about 100k, if we are comparing scholarships at decent schools.
Kind of the same for 600 vs 650, at lower-tiered schools.
Let's not argue whether a 750 is actually better than a 700. All else being equal, an application with a 750 score is at an advantage over one with a 700. The advantage diminishes in the 760+ range though.
So can we estimate that the average value of a 10-point increase in GMAT score translates to about 20k dollars? At least in the 600-750 range. If you wonder whether the implication that a 150 point increase translates to $300k sounds far-fetched, keep in mind that the advantage in starting salary of a graduate of Harvard wipes out the initial financial deficit in about 6 years, on average.
Is this estimate too high, too low, or just about right? Any thoughts are welcome.
I think the difference between a 650 and a 700 is also about 100k, if we are comparing scholarships at decent schools.
Kind of the same for 600 vs 650, at lower-tiered schools.
Let's not argue whether a 750 is actually better than a 700. All else being equal, an application with a 750 score is at an advantage over one with a 700. The advantage diminishes in the 760+ range though.
So can we estimate that the average value of a 10-point increase in GMAT score translates to about 20k dollars? At least in the 600-750 range. If you wonder whether the implication that a 150 point increase translates to $300k sounds far-fetched, keep in mind that the advantage in starting salary of a graduate of Harvard wipes out the initial financial deficit in about 6 years, on average.
Is this estimate too high, too low, or just about right? Any thoughts are welcome.
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06 Jul 2016, 14:15
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I never won anything, therefore I never even thought of getting any scholarship.
If you want to apply and get enrolled only if you get a scholarship - then definitely something is wrong with you
If you want to apply and get enrolled only if you get a scholarship - then definitely something is wrong with you
The traditionally accepted rule/principle is that you are unlikely to get a scholarship in a top 20 for a high GMAT Score.
You are highly likely to get one in a Top 50 and guaranteed to get one in a top 100. Usually that threshold is around 700-750, so if you have anything above that score, you are in a good place. However, choosing between a top 20 vs. Top 100, I would err on the top 100 side unless you really can't come up with the money; the lines become blurry when you take a #18 vs. #22 ranked school but if it is a #12 vs. #42, it is usually fairly clear. I think 30 points of separation is a pretty big divide.
What GMAT does help with is recruiting in consulting, esp if you have 760 and higher. I just had a confirmation of this chatting with a person who is starting at McKinsey. Basically him and many of his classmates applied to the same internships and jobs and many of them look pretty similar but his high GMAT score stood out, giving him one up on many of them. It is a quantifiable parameter that allows easily to evaluate one - sure you are all from Cornell/Booth/Yale, sure you all have good GPA and good resume-writing skills but only a few of you have GMAT 760+
This is true esp for consulting, where a higher GMAT score does help with your recruiting chances for the best slots. Of course in the current job market, baring any work permit issues, you have to really be a lost soul not to get a job at graduation from a top 20, and those who don't have are just too picky and particular. People are picky about MBA schools, why not about jobs?
As to your idea of quantifying improvement in GMAT score, there is a good chance that 100 points are worth $100K in scholarship money at a top 50 school for example but eventually it gets pretty hard to quantify across the board. I believe Kaplan's London office attempted to do something like that: https://www.kaptest.co.uk/gmat/preparing
You are highly likely to get one in a Top 50 and guaranteed to get one in a top 100. Usually that threshold is around 700-750, so if you have anything above that score, you are in a good place. However, choosing between a top 20 vs. Top 100, I would err on the top 100 side unless you really can't come up with the money; the lines become blurry when you take a #18 vs. #22 ranked school but if it is a #12 vs. #42, it is usually fairly clear. I think 30 points of separation is a pretty big divide.
What GMAT does help with is recruiting in consulting, esp if you have 760 and higher. I just had a confirmation of this chatting with a person who is starting at McKinsey. Basically him and many of his classmates applied to the same internships and jobs and many of them look pretty similar but his high GMAT score stood out, giving him one up on many of them. It is a quantifiable parameter that allows easily to evaluate one - sure you are all from Cornell/Booth/Yale, sure you all have good GPA and good resume-writing skills but only a few of you have GMAT 760+
This is true esp for consulting, where a higher GMAT score does help with your recruiting chances for the best slots. Of course in the current job market, baring any work permit issues, you have to really be a lost soul not to get a job at graduation from a top 20, and those who don't have are just too picky and particular. People are picky about MBA schools, why not about jobs?
As to your idea of quantifying improvement in GMAT score, there is a good chance that 100 points are worth $100K in scholarship money at a top 50 school for example but eventually it gets pretty hard to quantify across the board. I believe Kaplan's London office attempted to do something like that: https://www.kaptest.co.uk/gmat/preparing
