How Much Math Do Students Need to Succeed in Business and Economics Statistics?

My article this week is “How Much Math Do Students Need to Succeed in Business and Economics Statistics?  An Ordered Probit Analysis” and is found at http://www.amstat.org/publications/jse/v17n3/green.html.  This article presents the result of a statistical study looking at the impact of math prerequisites on the success of an introductory statistics course.

The introductory statistics course is typically a requirement for business and economic curriculums.  In order to successfully complete the statistics course there is usually some type of math prerequisite.  The authors looked at a large mid-western university that had made some changes to the prerequisites a few years earlier and were considering making another change.  The researchers conducted a Probit analysis, which is used with ordered limited dependent variables.  From the study the researchers found that higher performance could be tied to two particular requirements.  The first was that a math sequence that contains more credit hours which has a more rigorous coverage and more emphasis on calculus substantially increases the probability of success.  The second was that the probability of success increased with the requirement of completing the prerequisite math with a minimum C- grade.

I found this article interesting, though the general conclusions are somewhat predictable.  Of course more math and higher grades would typically lead someone to better performance.  But this study does attempt to quantify the difference in some way.  In fact, the results of the study led the school to make some decisions in their future requirements.  It seems reasonable to require a higher level of preparation prior to taking the course.  Though not part of this study, it does seem like it would also help in the quality of the learning in the statistics course.  Rather than struggling more with understanding the math mechanics involved, the better prepared student should be able to spend more time in thinking critically about the material.  This would be a greater benefit to their learning and future careers.

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