25622 Quantitative Business Analysis
UTS: Business: Finance and EconomicsCredit points: 6 cp
Subject level: Undergraduate
Result Type: Grade and marksRequisite(s): (25115 Economics for Business AND 25300 Fundamentals of Business Finance AND (26134 Business Statistics OR 26133 Business Information Analysis))
These requisites may not apply to students in certain courses.
There are also course requisites for this subject. See access conditions.
Handbook description
This subject provides students with skills essential for studying subjects offered by the School of Finance and Economics. Students learn basic mathematics and statistics, and consolidate their knowledge and skills in the context of real-world problems. Topics covered include bsaic algebra, simultaneous equations, differentiation and optimisation, multivariate regression and modelling of financial and economic data.
Subject objectives/outcomes
Mathematics facilitates the understanding of economic and financial concepts. The idea of a function, which links some variables to other variables, is fundamental to relationships in finance and economics. The richer the language that expresses relationships between variables, the greater the explanatory reach. This subject develops an understanding of the mathematics of relationships between economic and financial variables, and the statistical methods to estimate these relationships. Equipped with these estimated relationships, it becomes possible to test economic and financial hypotheses.
On successful completion of this subject, students should be able to:
- use basic mathematical skills for solving financial and economic problems
- apply techniques of multivariate statistical modelling for financial and economic modelling
- apply their knowledge of economics and finance to assess financial and economic issues and problems.
Contribution to graduate profile
The course will provide students with skills essential for studying subjects offered by the School of Finance and Economics. Students will consolidate their mathematical and statistical knowledge and skills in the context of real world problems and issues. It focuses on the development of practical modelling skills.
Teaching and learning strategies
Teaching strategies will include lectures, computer based tutorials and discussion of problem oriented case studies. Students will also be expected to undertake tutorial exercises in their own time using the relevant mathematical software and the computer based tutorials.
Content
- Review of basic algebra
- Solving systems of simultaneous equations
- Financial mathematics
- Differentiation, integration and optimization
- Econometric modeling of financial and economic data
- Multiple regression: estimation and inference
- Heteroskedasticity and autocorrelation: detection and correction
Required text(s)
Barnett, R.A., Ziegler, M.R. and Byleen, K.E. (2008) College Mathematics for Business, Economics, Life Sciences and Social Sciences, Prentice-Hall, 11th.ed. (Referred to as BZB)
Stock, James H. and Mark W. Watson (2007) Introduction to Econometrics, 2nd ed, Addison Wesley.
Recommended text(s)
Faculty of Business (1999), Guide to Writing Assignments, (available from the Co-op Bookshop).
