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The recent Valedictorian of my EE department, was 100% procedural, he wasn't a true engineer, all he did was remember precedure, if you interrupted procedure he wouldn't work to well. Problem sets and tests are straight from the book and rarely change procedure and this is why I can say that sometimes a 3.9 is not as good as a 3.3. Id much rather have a dynamic 3.3 than a procedural 3.9, though I would love a 3.9 dynamic, but they are rare.
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I definitely agree, but that's very different from before when you said that it's better to have a lower GPA. Companies don't assume that someone with a high GPA is a "procedural engineer" and someone with a lower GPA is a "dynamic engineer." Making that distinction should be done in the interview and not on paper.
Graduate school (master's degree) are very beneficial if you want to be more knowledgeable in a specific area, and didn't have that opportunity in undergrad. Some fields (I'm thinking structural engineering specifically) are very hard to get your foot into without that master's. PhD's are good for people who have a genuine interest in research in the area. For many PhD students, it doesn't cost them a dime. In fact, many actually get a stipend.