Graduate Management Admission Test

History

In 1953, the organization now called the Graduate Management Admission Council (GMAC) began as an association of nine business schools, whose goal was to develop a standardized test to help business schools select qualified applicants. In the first year it was offered, the assessment (now known as the Graduate Management Admission Test), was taken just over 2,000 times; in recent years, it has been taken more than 230,000 times annually. Initially used in admissions by 54 schools, the test is now used by more than 2,100 schools and 5,900 programs worldwide. On June 5, 2012, GMAC introduced an integrated reasoning section to the exam that aims to measure a test taker’s ability to evaluate information presented in multiple formats from multiple sources.

Predictive validity

The intended purpose of the GMAT is to predict student success in graduate business programs. According to GMAC, there is a .459 correlation (21% variance) between total GMAT scores and mid-program student grades based on data it collected between 1997 and 2004. Independent research has shown significantly different results. Independent research has shown that the GMAT can explain only 4.4% of the variance in final MBA GPA while undergraduate GPA can explain 17.4% of the variance in final MBA GPA. Additionally, more recent independent research has shown that the GMAT does not add predictive validity after undergraduate GPA and work experience have been considered and that even undergraduate GPA alone can be used in lieu of the GMAT.

Format and timing

The GMAT exam consists of four sections: an analytical writing assessment, an integrated reasoning section, a quantitative section, and a verbal section. Total testing time is three and a half hours, but test takers should plan for a total time of approximately four hours, with breaks. Test takers have 30 minutes for the analytical writing assessment and another 30 minutes to work through 12 questions, which often have multiple parts, on the integrated reasoning section and are given 75 minutes to work through 37 questions in the quantitative section and another 75 minutes to get through 41 questions in the verbal section.

The quantitative and verbal sections of the GMAT exam are both multiple-choice and are administered in the computer-adaptive format, adjusting to a test taker’s level of ability. At the start of the quantitative and verbal sections, test takers are presented with a question of average difficulty. As questions are answered correctly, the computer presents the test taker with increasingly difficult questions and as questions are answered incorrectly the computer presents the test taker with questions of decreasing difficulty. This process continues until test takers complete each section, at which point the computer will have an accurate assessment of their ability level in that subject area and come up with a raw score for each section.

Analytical Writing Assessment (AWA)

The AWA consists of one 30-minute writing task—analysis of an argument. It is important to be able to analyze the reasoning behind a given argument and write a critique of that argument. The essay will be given two independent ratings and these ratings are averaged together to determine the test taker's AWA score. One rating is given by a computerized reading evaluation and another is given by a person at GMAC who will read and score the essay themselves without knowledge of what the computerized score was. The automated essay-scoring engine is an electronic system that evaluates more than 50 structural and linguistic features, including organization of ideas, syntactic variety, and topical analysis. If the two ratings differ by more than one point, another evaluation by an expert reader is required to resolve the discrepancy and determine the final score.

The analytical writing assessment is graded on a scale of 1 (minimum) to 6 (maximum) in half-point intervals (a score of zero means the answer was gibberish or obviously not written on the assigned topic or the test taker failed to write anything at all on the AWA).

Integrated reasoning

Integrated Reasoning (IR) is a section introduced in June 2012 and is designed to measure a test taker’s ability to evaluate data presented in multiple formats from multiple sources. The skills being tested by the integrated reasoning section were identified in a survey of 740 management faculty worldwide as important for today’s incoming students. The integrated reasoning section consists of 12 questions (which often consist of multiple parts themselves) in four different formats: graphics interpretation, two-part analysis, table analysis, and multi-source reasoning. Integrated reasoning scores range from 1 to 8. Like the Analytical Writing Assessment (AWA), this section is scored separately from the quantitative and verbal section. Performance on the IR and AWA sections do not contribute to the total GMAT score.

The integrated reasoning section includes four question types: table analysis, graphics interpretation, multi-source reasoning, and two-part analysis. In the table analysis section, test takers are presented with a sortable table of information, similar to a spreadsheet, which has to be analyzed. Each question will have several statements with opposite-answer options (e.g., true/false, yes/no), and test takers click on the correct option. Graphics interpretation questions ask test takers to interpret a graph or graphical image. Each question has fill-in-the-blank statements with pull-down menus; test takers must choose the options that make the statements accurate. Multi-source reasoning questions are accompanied by two to three sources of information presented on tabbed pages. Test takers click on the tabs and examine all the relevant information, which may be a combination of text, charts, and tables to answer either traditional multiple-choice or opposite-answer (e.g., yes/no, true/false) questions. Two-part analysis questions involve two components for a solution. Possible answers are given in a table format with a column for each component and rows with possible options. Test takers have to choose one response per column.

Quantitative section

The quantitative section of the GMAT seeks to measure the ability to reason quantitatively, solve quantitative problems, interpret graphic data, and analyze and use information given in a problem. Questions require knowledge of certain algebra, geometry, and arithmetic. There are two types of quantitative questions: problem solving and data sufficiency. The use of calculators is not allowed on the quantitative section of the GMAT. Test takers must do their math work out by hand using a wet erase pen and laminated graph paper which are given to them at the testing center. Scores range from 0 to 60, although GMAC only reports scores between 6 and 51.

Problem solving questions are designed to test the ability to reason quantitatively and to solve quantitative problems. Data sufficiency is a question type unique to the GMAT designed to measure the ability to understand and analyze a quantitative problem, recognize what information is relevant or irrelevant and determine at what point there is enough information to solve a problem or recognize the fact that there is insufficient information given to solve a particular problem.

Verbal section

The verbal section of the GMAT exam includes the following question types: reading comprehension, critical reasoning, and sentence correction. Each question type gives five answer options from which to select. Verbal scores range from 0 to 60; however, scores below 9 or above 44 are rare.

According to GMAC, the reading comprehension question type tests ability to analyze information and draw a conclusion. Reading comprehension passages can be anywhere from one to several paragraphs long. According to GMAC, the critical reasoning question type assesses reasoning skills. According to GMAC, the sentence correction question type tests grammar and effective communication skills. From the available answer options, the test taker should select the most effective construction that best expresses the intent of the sentence.

Scoring

The total GMAT score ranges from 200 to 800 and measures performance on the quantitative and verbal sections together (performance on the AWA and IR sections do not count toward the total score, those sections are scored separately). Scores are given in increments of 10 (e.g. 540, 550, 560, 570, etc.). From the most recent data released by GMAC, the average GMAT score of all test takers is about 540.

The score distribution conforms to a bell curve with a standard deviation of approximately 100 points, meaning that 68% of examinees score between 440 and 640. More precisely, the mean score is 545.6 with a standard deviation of 121.07 points.

The final score is not based solely on the last question the examinee answers (i.e. the level of difficulty of questions reached through the computer adaptive presentation of questions). The algorithm used to build a score is more complicated than that. The examinee can make a mistake and answer incorrectly and the computer will recognize that item as an anomaly. If the examinee misses the first question his score will not necessarily fall in the bottom half of the range.

After previewing his/her unofficial GMAT score, a GMAT test taker has two minutes to decide whether to keep or cancel the GMAT score. A cancelled score can be retrieved within 60 days for a fee of $100. After 60 days a cancelled score is not retrievable.

Preparation

Test takers may register for the GMAT either online at mba.com or by calling one of the test centers. To schedule an exam, an appointment must be made at one of the designated test centers. The GMAT may not be taken more than once within 31 days, even if the scores are canceled. Official GMAT exam study materials are available on the mba.com online store and through third-party vendors. The cost of the exam is $250. All applicants are required to present valid ID when taking the test. Upon completion of the test, test takers have the option of canceling or reporting their scores. As of July 2014, test takers were allowed to view their score before making this decision.

There are test preparation companies that offer GMAT courses. Many test preparation companies have gone on record stating noteworthy GMAT results, including average or guaranteed score increases over 90 points. Other available test preparation resources include university text books, GMAT preparation books, sample tests, and free web resources.