EC404 Managerial Economics

for SP 2008

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Mission Statement: The mission of Park University, an entrepreneurial institution of learning, is to provide access to academic excellence, which will prepare learners to think critically, communicate effectively and engage in lifelong learning while serving a global community.

Vision Statement: Park University will be a renowned international leader in providing innovative educational opportunities for learners within the global society.


EC 404 Managerial Economics


SP 2008 HOZ


Dr. Pete Soule


Economics Professor and Chair of Economics Department


Ph.D. Economics

Office Location

Parkville Campus Mackay Hall Room 27A

Office Hours

Tuesday & Thursday 8:00-10:00 am plus Wednesday 4:00-6:00 pm

Daytime Phone


Other Phone

Cell: 913-486-5649


Semester Dates

Jan 16  - May 7

Class Days


Class Time

6:00 - 8:30 PM


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

Credit Hours



 Ragsdale, Spreadsheet Modeling and Decision Analysis, Fifth Edition Revised (5e). Southwestern 2008.  ISBN 0-324-65663-7

Soule, Peter, Guide to Quanittative Research Methods  7th ed. 2008. ISBN 978-007-339687-3.  Referred to below as "GUIDE."

Textbooks can be purchased through the MBS bookstore

Textbooks can be purchased through the Parkville Bookstore

Additional Resources:

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

MS PowerPoint (PPT) The text comes with a CD-ROM that has PPT summaries of the chapters along with Excel work sheets for the problems.  PPT is also required for the oral report.

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Course Description:
This course covers the concepts, tools, and methods of economic analysis relevant to a broad cross section of decisions within the business firm. Attention is given to the analysis of market demand and the determination of costs relevant to various managerial decisions. Interrelationships between price policy, costs, promotion outlays, operating rates, production schedules, capital budgets, and financing in the short and long run are stressed. 3 cr.

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: None of the tests will be a take-home exam. 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.   The Final Test will be closed Textbook and closed-notes.  Tables taken from the GUIDE will be attached to this test as necessary.  Tests 2 and 3 will focus on material presented after the previous Test.  The final exam will be comprehensive.


A 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.


TERM PROJECT.  The term project is a group project that involves proposing a model and then writing a formal proposal for the research it involves. The class will be divided into two person groups that will work together outside of class on their term project.  The student groups will use Excel to regress data for their model.  The student groups will then analyze the computer output.  Each group will write and submit for grading a written report using the APA format for in-text citations and the References page. See GUIDE for details on the various requirements for the written papers.

       Only one paper, one floppy disc, etc. will be turned in by each group.  Each Item turned in will have the names of all members on the first page.  The Label on the floppy disc will be in the format shown to the right.


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.  See additional Oral Report requirements and suggestions in GUIDE, pages 181-83, and the checklist on page 195. 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.


Grading Policy Grading Criteria – Evaluation Item Points -- Date
                                   Evaluation Item     Points    Date
            Homework and Case Studies       100   Assigned in Class
     Project Topic and Feasibility Paper      100     Feb 6

                                                 Test 1       125    Feb 20

         Term Project Written Proposal           80    Mar 26

                                                Test 2       125      Apr 2

         Term Project Written Report         70      Apr 9

                  Term Project Presentation       100      Apr 30
                                           Final Exam       300      May 7
                                                  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 and Management 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 and Management.

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% CREDIT.


Tests which are missed by a student may be made up provided the student has a valid excuse and informed the instructor before the scheduled exam.  Make-up tests will generally be more difficult and may include additional material.

Classroom Rules of Conduct:

E-MAIL TO INSTRUCTOR:  Always use the following subject line: EC604, 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 is not paying attention to other 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                 Topic(s)                                                                Text Chapter (Pages)

1  Jan 16      Regression Intro GUIDE: (pp 1-5, 7-9, 101-110, 119-129), Chapt 13
2   Jan 23     Excel Regression                                                           GUIDE Chapter 10

3   Jan 30     Conducting Regression Analysis                                  GUIDE Chapter 11

4   Feb 6     Statistical Significance and Excel                                  GUIDE Chapter 12

4                    (Project Topic and Feasibility Paper Due)                  GUIDE Chapter 13

5   Feb 13     Linear Programming                                      Ragsdale 2, 3.0-3.7, 4.0-4.5

6    Feb 20    TEST 1 (Last 1 hour and 15 minutes of period)

6                     LP Applications (Make vs. Buy & Investment)                         Ragsdale 3.8 - 3.9
7    Feb 27     LP Applications (Blending & Cash Flow)                                Ragsdale 3.11-3.13

8    Mar 5    Network Modeling                                                                           Ragsdale 5

9    Mar 19    Network Modeling (continued)                                                     Ragsdale 5

10  Mar 26     Integer Linear Programming                                                       Ragsdale 6

10                   (Term Project Proposal Due)                                           Guide Chapter 14

11    Apr 2  TEST 2 (Last 1 hour and 15 minutes of period) 

11                Time Series Forecasting                                                              Ragsdale 11

12     Apr 9   Goal Programming and Multiple Objective Optimization          Ragsdale 7

12                   (Term Project Report Due)                                              Guide Chapter 15

13     Apr 16   Goal Programming and Multiple Objective Optimization       Ragsdale 7

14     Apr 23   Nonlinear Programming                                                            Ragsdale 8

15     Apr 30   Term Project Oral Presentations                                    Guide Chapter 16

16    May 7   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 2007-2008 Undergraduate Catalog Page 85-86

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. Park University 2007-2008 Undergraduate Catalog Page 85

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.
  3. Work missed through unexcused absences must also be made up within the semester/term of enrollment, but unexcused absences may carry further penalties.
  4. 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".
  5. A "Contract for Incomplete" will not be issued to a student who has unexcused or excessive absences recorded for a course.
  6. 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.
  7. 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 2007-2008 Undergraduate Catalog Page 87-88

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: .

Change to point values of assignments


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Last Updated:12/16/2007 3:59:18 AM