PMM2020 - Economic and statistical decision making
6 points, SCA Band 0 (NATIONAL PRIORITY), 0.125 EFTSL
Undergraduate Faculty of Business and Economics
Leader(s): Dr Roland Shami (Econometrics and Business Statistics); Associate Professor Vai-Lam Mui (Economics)
The intention of this subject is to develop students' understanding of economic and statistical approaches to decision-making in the business environment. As such it deals with the theory of the firm, some relevant aspects of macroeconomics, problems of measurement, data sources and the use of time series. Topics covered are: economic systems; market structure; macroeconomic aspects of the firm; applications of regression in business; long and short term forecasting of time series; technological view of the firm; transaction costs view of the firm; new classical theory of the firm; three-domain model of the firm.
The learning goals associated with this unit are to:
- select between alternative decisions using different criteria techniques such as pay-off tables, expected monetary values and decision trees
- generate regression analysis from Excel and interpret the results
- interpret and analyse the results of basic time series techniques such as indexing, deflating and forecasting
- analyse market forces of supply and demand and understand the effects of government policies such as price ceilings, price floors and taxes on consumers and producers
- interpret the meaning of market efficiency and explain how firms operate in a market within different market structures.
Within semester assessment: 40%
Final examination (3 hours): 60%
One 2-hour lecture and one 1-hour practical lab per week