Business Reference Guide: Analyzing Economics & Finance

ebook

By The Editors of Salem Press

cover image of Business Reference Guide: Analyzing Economics & Finance

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This volume begins with an essay by Marlanda English that highlights the essential role of mathematic modeling, which allows analysts to study “what-if” scenarios to predict what would happen should certain situations occur. The process of applying these mathematical tools to economics is known as econometrics. According to Ruth A. Wienclaw, econometrics “gives economists a better understanding of real world phenomena and processes than would more controlled [and] experimental studies.” Mathematics, as outlined by Simone I. Flynn, can also assist with business management; well-structured tools provide businesses with the ability to conduct derivative analysis, to generate forecasts, and to make educated decisions. Michael P. Auerbach notes that the aforementioned computational methods can also be used by policymakers and theorists to develop comprehensive state-level models.
Business Reference Guide: Analyzing Economics & Finance