Is it a proxy for an intelligence test or as a way to judge if someone has the dedication to commit to completing a substantial project/undertaking (such as 4 years of college)? I think the latter explanation is consistent with the rest of your comment. I suppose it could be both, though.
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Getting admitted is a proxy for an IQ test. Getting through is a proxy for being able to grind on tasks. Both are useful job skills. (My job is intellectually satisfying, but also involves writing reports that really can be described as a grind.)