EC404 Managerial Economics

for FA 2010

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EC404 Managerial Economics


FA 2010 HOZ


Soule, Peter E.


Professor of Economics


PhD. Economics

Office Location

Parkville Campus Mackay Hall Room 27A

Office Hours

MW 9:00-12:00 Noon

Daytime Phone


Other Phone

Cell: 913-486-5649


Semester Dates

Aug 18-Dec 8, 2010

Class Days


Class Time

6:00 - 8:30 PM


EC141, EC142, EC315 (or equivalent intermediate statistics course) and CS140 (or equivalent MS Word & Excel course)

Credit Hours


Thomas and Maurice, Managerial Economics, 10th ed. McGraw-Hill 2011 ISBN 978-0-07-337591-5

Textbooks can be purchased through the Parkville Bookstore

Additional Resources:
STYLE MANUAL: Hacker, Diana. Rules for Writers or other APA style manual.

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Course Description:
This course uses linear regression to analyze various economic and business mangement problems. Prerequisites: EC 141, EC 142, and EC 315.

Educational Philosophy:

 The purpose of this course is to educate, which requires two things to happen. The teacher must teach or facilitate learning and the student must learn the required materials. This requires feed back to the instructor on how the student is learning. This feedback occurs in written work and classroom discussion.

It is preferred that students ask questions during class as they arise. Often, a student will approach the instructor after class with a question that brings up a very important point that should have been addressed during class but the class is out the door. This is especially true with perceived calculation errors on the part of the instructor, which were placed on the black (or white) board and are therefore in everyone’s notes. If there was an error, it will be corrected. If not, there was confusion not only on the part of the student asking the question, but also others in the class, who saw the same apparent error but didn’t ask about it. Obviously, this calls for additional clarification on the part of the instructor. No question is dumb and no student will be belittled for asking a question or making a comment.

The homework is intended to assess what students know and what they don’t. Perfection is not expected and the grading is somewhat inflated. Homework is graded based on effort while tests and papers are graded on achievement. If the student indicates a near total lack of understanding of assigned homework, the grading will become more realistic so that the student is not lulled into a false sense of mastery just before the test boom gets lowered. A second area where grading is benign is the Initial Topic Paper of the Term Project. It is expected that some student groups will have more difficulty absorbing the concepts of the Initial Topic Paper. Having said all this, it is still true that perfect or near-perfect homework and Initial Topic Papers will earn higher scores than less perfect ones. 

Learning Outcomes:
  Core Learning Outcomes

  1. Integrate economic and statistical theory to solve practical business-oriented problems.
  2. Conduct Regression Analysis using SPSS or Excel, and analyze the regression coefficients.
  3. Solve Linear Programming problems using Excel.
  4. Write a proposal for a research project for a statistical model selected by the student.

Core Assessment:

Class Assessment:

HOMEWORK: Homework is graded liberally and solution copies are provided to students. The primary purpose of homework is to give feedback to the students and the instructor as to what learning has taken place. Successful mastery of homework is necessary preparation for the test(s). Any questions on the homework problems need to be resolved prior to the subsequent test.

TEST INFORMATION: Tests will primarily involve problem solving but may also have multiple choice and/or short answer sections. The problems will be similar to those presented in class and provided in the homework assignments.   All tests will be closed Textbook and closed-notes. Statistical tables which are handed out in class will be attached to tests as necessary. Test 2 will focus on material presented after the previous Test. The final exam will be comprehensive.

TERM PROJECT. The class will be divided into two person groups that will work together outside of class on their term project. There are three aspects to this project.

             1. The TOPIC AND FEASIBILITY PAPER involves proposing a regression model which must relate to some aspect of managerial economics. This paper must be accompanied by current (latest available) data that will be used in the regression. Do not conduct the regression at this point. It is advisable to discuss the proposed model with the instructor prior to submitting this paper. Use cross-section or time-series data. Do not use “pooled” cross-section and time-series data. This requirement will be reported in a MS Word file and an Excel file (for the data).         

   2. The PROPOSAL PAPER is a written report using the APA format for in-text citations and the References page.  It is written after acceptance by the instructor of the Topic and Feasibility Paper. The Proposal is a formal paper explaining why each of the independent variables were chosen and the expected relationship of each of them to the dependent variable. It does not include regression data or output. 
            The first step in researching a full formal quantitative research paper is to do a survey of the literature. That survey of the literature summarizes all previous studies in the area of the intended research project.   We will skip this step but this project will require that the relationship between the independent variables and the dependent variable be based on previous research. The proposal requires a "Sez who" citation for each independent variable that links it to the dependent variable. These references cite someone else who, in print, said your independent variables are important to your dependent variable.  The only sources that cannot be used for the “Sez Who” citations are encyclopedias of any sort, including the Wikipedia, and dictionaries.  Often, text books are good sources because they are full of definitions of relationships.  The Proposal must have APA format, in-text citations for the “Sez Who” sources and the data sources. The Proposal is submitted  a MS Word file.  
   3. The REPORT uses the Proposal Paper as its introduction. Here, the results of two Excel regressions will be reported. The initial model data will be regressed and then the data will be changed in an attempt to improve the statistical significance of the model. For both regressions, the student group will analyze the Excel output to include discussing the statistical significance of each independent variable. The importance of the R-Squared statistic and for time-series regressions the Durbin-Watson statistic will be discussed. The Report will contain a table for each regression that includes the name of the Dependent Variable, sample size, R-Squared, and (for time-series regressions) the Durbin-Watson statistic. These tables will have a line for each independent variable that includes the variable name, its coefficient, t-statistic, and P-value. The Excel printouts will be attached as an appendix after the APA References page. The Report will be in a MS Word file with an Excel file containing the data that was regressed

ORAL REPORT. Oral presentations are a group project that will result in a grade to each student in the group. Grading will include the group’s compliance with the following. Appropriate attire for all group members is a tie and jacket for males and equivalent attire for females.

        PowerPoint presentations should follow the following rules.

           1) The 3-5-7 rule

               - No more than 3 main points per slide

               - No more than 5 lines of dense text

               - No more than 7 words per line

            2) Avoid technology bells and whistles that do not enhance learning objectives of your presentation.


                                  Evaluation Item      Points   

            Homework and Case Studies        150   
   Project Topic and Feasibility Paper        100      
                                                  Test 1       150     
                       Term Project Proposal         50      
                                                  Test 2       150  
              Term Project Written Report         50 
                 Term Project Presentation         50 
                                          Final Exam       300      
                                               TOTAL      1000

The course grade for students will be based on the overall average of homework and tests taken during the course in accordance with the weighting of the various requirements as stated in the syllabus.

All final exams in all School of Business courses will be comprehensive and will be closed book and closed notes. They will constitute 30% of the total course grade and will not be a take-home exam. They will be completed during the test week in the period designated by the registrar or by the Proctor in the case online courses. If calculators are allowed, they will not be multifunctional electronic devices that include features such as: phones, cameras, instant messaging, pagers, and so forth. Electronic Computers will not be allowed on final exams unless an exception is made by the Dean of the School of Business.

Late Submission of Course Materials:
Completed homework is collected at the beginning of the class on the day it is due. After that time, up to the point at which the solution is distributed, the maximum homework grade will be 50%. Typically, the homework solution is distributed when homework is returned. After this point late homework can earn not more than 20% creditA student, who misses an exam, is allowed to make it up if their absence was excused before the test or is a genuine emergency. Makeup tests will substitute essay questions for the short answer and multiple-choice portion of the original exam. The makeup test will have a different problem section and will include subjects covered since the exam that was missed.
A student who misses an exam is allowed to make it up if his or her absence was excused before the test or is a genuine emergency. Makeup tests will substitute essay questions for the multiple choice and short answer portion of the original exam. The makeup will have a different problem section.

Classroom Rules of Conduct:

EMAIL TO INSTRUCTOR: Always use the following subject line: EC404, First-Name, Last-Name, and (short) subject.   If you leave a message by voice mail or any other means be sure to include this information.

CELL PHONES and PAGERS. Turn off cell phones and pagers before class. Any one, who has a vital need for such devices during class, must discuss this with instructor before class. In this situation, if device has a vibrate mode, it must be used. The student must leave the room to take any message. Cell phones cannot be used during tests.

GRADING OF GROUP PROJECTS. The individual student’s grade will generally be the group grade unless there is evidence that a student is not sharing in the group effort, the student is absent, or in the case of oral presentations, is not paying attention to other student presentations.

Course Topic/Dates/Assignments:

 Tests are fixed per the schedule below. Class material will be presented in the order shown below but will deviate from the schedule as necessary.

Week/Date            Topic(s)                                                              Text Chapter

18 Aug          Regression Intro                                                          4 (p. 120-26)

25 Aug          Managers, Profit, and Markets                                                1 

 1 Sep          Demand, Supply, and Equilibrium                                           2           

 8 Sep          Marginal Analysis                                                                     3

15 Sep         Elasticity                                                                                  6

                             (Project Topic and Feasibility Paper Due)                           

22 Sep        TEST 1 

29 Sep         Excel Regression                                                                    4 (126-48)

 6 Oct         Consumer Behavior Theory                                                   5    

 20 Oct       Production and Costs in Short Run                                        8
                              (Term Project Proposal Due) 

27 Oct       Managerial Decisions in Competitive Markets                        11

3 Nov        TEST 2 (Last 1 hour and 15 minutes of period) 

                  Forecasting                                                                              7 

10 Nov      Managerial Decisions in Non-Competitive Markets                12

                    (Term Project Report Due)                                                  

17 Nov      Production and Cost in Long-Run                                           9   

24 Nov      Production and Cost Estimation                                            10    

 1 Dec      Term Project Oral Presentations                                                

 8 Dec      FINAL TEST                                                   All Previous References

Academic Honesty:
Academic integrity is the foundation of the academic community. Because each student has the primary responsibility for being academically honest, students are advised to read and understand all sections of this policy relating to standards of conduct and academic life. Park University students and faculty members are encouraged to take advantage of the University resources available for learning about academic honesty ( or Park University 2010-2011 Undergraduate Catalog Page 92

Plagiarism involves the use of quotations without quotation marks, the use of quotations without indication of the source, the use of another's idea without acknowledging the source, the submission of a paper, laboratory report, project, or class assignment (any portion of such) prepared by another person, or incorrect paraphrasing. from Park University 2010-2011 Undergraduate Catalog Page 92-93

Attendance Policy:
Instructors are required to maintain attendance records and to report absences via the online attendance reporting system.

  1. The instructor may excuse absences for valid reasons, but missed work must be made up within the semester/term of enrollment.
  2. Work missed through unexcused absences must also be made up within the semester/term of enrollment, but unexcused absences may carry further penalties.
  3. In the event of two consecutive weeks of unexcused absences in a semester/term of enrollment, the student will be administratively withdrawn, resulting in a grade of "F".
  4. A "Contract for Incomplete" will not be issued to a student who has unexcused or excessive absences recorded for a course.
  5. Students receiving Military Tuition Assistance or Veterans Administration educational benefits must not exceed three unexcused absences in the semester/term of enrollment. Excessive absences will be reported to the appropriate agency and may result in a monetary penalty to the student.
  6. Report of a "F" grade (attendance or academic) resulting from excessive absence for those students who are receiving financial assistance from agencies not mentioned in item 5 above will be reported to the appropriate agency.

Park University 2010-2011 Undergraduate Catalog Page 95-96

Disability Guidelines:
Park University is committed to meeting the needs of all students that meet the criteria for special assistance. These guidelines are designed to supply directions to students concerning the information necessary to accomplish this goal. It is Park University's policy to comply fully with federal and state law, including Section 504 of the Rehabilitation Act of 1973 and the Americans with Disabilities Act of 1990, regarding students with disabilities. In the case of any inconsistency between these guidelines and federal and/or state law, the provisions of the law will apply. Additional information concerning Park University's policies and procedures related to disability can be found on the Park University web page: .


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Last Updated:8/16/2010 11:02:36 AM