Career opportunities making maths your business

Quantitative skills are in high demand in both the corporate world and the public sector. (Search on seek.com.au for jobs in analytics, statistics, econometrics or actuarial studies and you will see there are many jobs offering large salaries to qualied candidates.) Monash econometrics and business statistics graduates are very highly regarded and have proven to be highly employable. In the business world, Monash graduates are found in: Banks and nance companies (stock brokering, asset allocation, risk analysis) Superannuation and insurance rms (actuarial analysis, risk analysis) Consulting rms (evaluating management systems, exploring economic trends) Marketing and retailing (market research, logistics, quantitative business analysis) The manufacturing sector (providing quality control, designing new products) The Treasury (economic modelling, policy evaluation) The Industry Commission (research into particular industry development) The Australian Bureau of Statistics (survey design and statistical analysis) The Bureau of Agricultural and Resource Economics (policy analysis and commodity forecasting)

Best jobs of 2013

As reported in the Wall Street Journal in April 2013, CareerCast.com, a US-based career website, ranked 200 jobs from best to worst based on ve criteria: physical demands, work environment, income, stress, and hiring outlook. To compile its list, the rm primarily used data from the US Bureau of Labor Statistics and other government agencies. In these rankings, six careers that require econometrics and business statistics skills were ranked in the Top 50 best jobs, including: Actuary (No. 1) University professor (No. 14) Statistician (No. 20) Market research analyst (No. 40) Logistician (No. 46) Management consultant (No. 48) You can see the complete list of jobs at www.careercast.com/jobs-rated

Faculty of Business and Economics

A closer look at

ECONOMETRICS AND BUSINESS STATISTICS

Why study econometrics and business statistics?
Traditionally a student who is strong in mathematics might choose an engineering or science degree when entering university. However, mathematicians are fast becoming the new brains behind the increasingly complex world of commerce. As the workplace demands more specialisation of skills, jobs in nance, marketing, management consulting and the public sector will increasingly go to graduates with excellent numeracy skills who can apply theory to solve real problems. The disciplines of econometrics and business statistics provide ideal ways of combining mathematical ability with a desire for a career in the business world. Each of these areas is concerned with extracting the best possible information from the data in order to aid the decision maker. Statistics is the most widely used quantitative method in business. It is often applied to sales forecasting, quality control and market research. Data used in business include population censuses, opinion polls, consumer databases and sales and demand data.

You can study econometrics in the: Bachelor of Business Bachelor of Commerce Bachelor of Economics Bachelor of Economics Advanced with Honours

Cordelia Foo
Current student Bachelor of Commerce/ Bachelor of Economics

What does an econometrician do?

An econometrician combines a good understanding of both economic theory and statistical methods to help determine if a collection of observed data values are consistent with specic hypotheses from economic theory. Once a theoretical model is established, the econometrician will estimate the values of economic variables of interest, and then often quantify the impact of proposed policy changes on economic outcomes. Econometricians are highly valued, particularly in the public sector as policy makers need strong empirical evidence upon which to base their decisions. State and Federal Government departments, and public corporations such as Telstra and the Reserve Bank of Australia, regularly seek graduates with such quantitative skills.

Emma Grey
Current student Bachelor of Economics

I am currently studying a double degree in commerce and economics with majors in economics and econometrics. I love how economics is used to explain real-life events by breaking them down into their essential elements. More often than not, this is done using statistical models, which is where econometrics comes in. Economics and econometrics go hand in hand, so studying both makes practical sense.

For me, econometrics and business statistics is essentially the statistical side of economics. That may sound daunting to those who dont love mathematics, but its actually a very interesting eld. Econometrics involves quantifying (putting numbers to) economic concepts and relationships. That is why I am drawn to it. Instead of making assumptions about certain things for example, as the price of bananas goes up, consumers buy less of them an econometrician can estimate what will happen (how many bananas will be purchased). These sorts of quantitative skills have extremely useful applications in the business world.

What does a statistician do?

A statistician summarises and models data using probability and mathematical tools. These general skills are highly valued when, for example, a company is looking for productivity improvements, or wants to identify market trends, etc. In a competitive business environment rich with data, a statistician can provide empirical support for decisions and therefore provide the organisation with a competitive edge. As the volume and complexity of data being obtained continues, individuals who can extract useful information from large amounts of data will be in great demand.

www.monash.edu/business-economics

Monash University reserves the right to alter information, procedures, fees and regulations contained in this document. Please check the Monash University website for updates (www.monash.edu). All information reects prescriptions, policy and practice in force at time of publication. Published July 2013. CRICOS provider: Monash University 00008C

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www.monash.edu/business-economics

Econometrics and business statistics at Monash

At Monash, teaching and research in econometrics and business statistics has a world-class reputation. As leaders in these vital areas, you will nd that econometrics and business statistics will enhance your professional career distinguishing you and your skills in the business world. In recognition of its integral role in a business career, all degrees in the Faculty of Business and Economics include a compulsory business statistics component. Students who wish to undertake further studies in business statistics and econometrics have a number of options. Major in econometrics and business statistics You can study an econometrics and business statistics as part of the Bachelor of Commerce or the Bachelor of Economics (and related tagged and double degrees). If you choose this major, you will also have a great deal of exibility to tailor your study to focus on specic interests whether it be nance, marketing, economics or other business applications while developing general mathematical and statistical skills to support your ability to move into new areas. The econometrics and business statistics major is also ideally suited for students undertaking a double degree as the skills learned will have direct application in other disciplines, for example in an area of science, engineering, or psychology. Major in econometrics Monash offers an econometrics major as part of the Bachelor of Business (and related tagged and double degrees). As part of this major you will develop skills and knowledge in the extraction of information from data, with a focus on analysing data using economic theories or computer-based statistical models.

Units in the major

A major in econometrics or business statistics requires you to study a minimum of eight units across the discipline. Some of your units such as business statistics and introductory econometrics are compulsory, but you can choose the other units to wish to study. Some of your options include: Data Analysis in Business Business Modelling Mathematics for Business Quantitative Methods for Risk Analysis Applied Econometrics Quantitative Methods for Financial Markets Optimisation for Managers Survey Data Analysis Quantitative Models for Business Research Business Forecasting As well as your eight-unit major, you can also choose to study additional econometrics units as electives. You can also study some actuarial units as part of your econometrics and business statistics major. Please note: some units may be different between the Bachelor of Commerce/Bachelor of Economics and the Bachelor of Business.

Course plans
These course plans are an example of what your degree might look like if you study a major in econometrics or econometrics and business statistics at Monash:
Bachelor of Business Major in Econometrics First Year Semester 1 Semester 2 Second Year Semester 1 Semester 2 Third Year Semester 1 Semester 2 Econometrics unit (students choice) Econometrics unit (students choice) Econometrics unit (students choice) Open elective or second major Open elective or second major Open elective or second major Open elective or second major Open elective or second major Introductory econometrics Econometrics unit (students choice) Econometrics unit (students choice) Econometrics unit (students choice) Faculty business elective Open elective or second major Open elective or second major Open elective or second major Introduction to management Principles of accounting and nance Marketing theory and practice Commercial law Business statistics Microeconomics Faculty business elective Faculty business elective

Bachelor of Commerce Major in Econometrics and business statistics

The differences between our majors

In the Bachelor of Business econometrics major, you learn various techniques for analysing data using spreadsheets and statistical packages. You are also taught to produce written reports that interpret statistical results in clear and non-technical language. These skills equip you to perform statistical analysis in a variety of business settings, and are thus valued by many employers. In contrast, in the Bachelor of Commerce econometrics and business statistics major, you learn not only the techniques for analysing and interpreting data, but also their scientic foundation. You thus acquire the ability to modify existing techniques to suit new situations, and develop new methods when needed. As the foundational training that you receive builds on the principles of mathematical statistics, you need to have an interest in and an aptitude for mathematics; a need that is consistent with the higher mathematics prerequisite for this course.

Karen Lau
Bachelor of Commerce (Honours)/ Bachelor of Science (2012)

First Year Semester 1 Semester 2 Principles of marketing Principles of microeconomics Business and economic statistics Introductory econometrics Business law Introduction to management Principles of accounting and nance Open elective or second major

Choosing which course to take as an undergraduate was difcult. With a strong focus on the science disciplines during secondary education, I had very little businessoriented knowledge. As a result, a double degree which covered both was ideal for me. As part of my double degree in science and commerce I decided to major in both econometrics and biochemistry. I found I enjoyed both disciplines equally, and discovered econometrics to be a great mesh of science and business. I chose to follow up my undergraduate degree with Honours in econometrics, as I felt it would help me gain a wider experience in the application of statistical techniques. To me, econometrics is a science, as it involves the application of statistics, but it is also a commerce discipline as it involves the use of modelling techniques on economic theory to better understand what is happening in the economy. Currently, my studies have led me to a career as a Ratings Modelling Analyst. This role involves the statistical modelling of the amount of capital the institution must hold at all times to buffer against risk posed by changes in the economic environment. The knowledge gained from econometrics major has denitely been vital in this role, as statistical modelling techniques are used frequently in this industry. What I enjoy the most about econometrics is that it challenges you to apply logical reasoning with statistical techniques to prove your arguments.

Second Year Semester 1 Econometrics and business statistics unit (students choice) Econometrics and business statistics unit (students choice) Econometrics and business statistics unit (students choice) Econometrics and business statistics unit (students choice) Open elective or second major Open elective or second major Open elective or second major Open elective or second major

Semester 2

Third Year Semester 1 Econometrics and business statistics unit (students choice) Econometrics and business statistics unit (students choice) Faculty commerce elective Open elective or second major Faculty commerce elective Open elective or second major Open elective or second major

Econometrics units as electives

You can also study econometrics and business statistics units as electives within the Bachelor of Business, Bachelor of Commerce and Bachelor of Economics. Subjects within econometrics, such as data analysis, business forecasting, business modelling, and quantitative studies will provide you with mathematical skills that are extremely useful in other areas of study. Studying econometrics electives may complement your studies in accounting, banking and nance, economics, management and marketing, just to name a few.

Semester 2

Faculty commerce elective

Please note: these course maps are samples only. The econometrics units can be selected from a list of available units in the discipline. Your electives/second major units can be selected from a wide list of majors/units offered by the Faculty, or you can choose to study additional econometrics units or a complementary second major such as actuarial studies or economics. A full list of undergraduate units offered by Monash is available at www.monash.edu/study
Students are advised that, while the course advisors will endeavour to give every possible assistance and advice concerning unit choice, the onus is on students to ensure that units selected meet degree regulations and requirements. Students should refer to the University Handbook for further information on course and unit details.