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The Graduate Management Admission Test (GMAT) is a computer adaptive test (CAT) intended to assess certain analytical, writing, quantitative, verbal, and reading skills in written English for use in admission to a graduate management program, such as an MBA. It requires knowledge of certain specific grammar and knowledge of certain specific algebra, geometry, and arithmetic. The GMAT does not measure business knowledge or skill, nor does it measure intelligence.
According to the test owning company, the Graduate Management Admission Council (GMAC), the GMAT assesses analytical writing and problem-solving abilities, while also addressing data sufficiency, logic, and critical reasoning skills that it believes to be vital to real-world business and management success. It can be taken up to five times a year. Each attempt must be at least 16 days apart.
GMAT is a registered trademark of the Graduate Management Admission Council. More than 5,900 programs offered by more than 2,100 universities and institutions use the GMAT exam as part of the selection criteria for their programs. Business schools use the test as a criterion for admission into a wide range of graduate management programs, including MBA, Master of Accountancy, and Master of Finance programs. According to a survey conducted, the GMAT is still the number one choice for MBA aspirants despite the increasing acceptability of GRE scores.
According to GMAC, it has continually performed validity studies to statistically verify that the exam predicts success in business school programs
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 (Grade Point Average) 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 considering the GMAT