GRADUATE EDUCATION IN QUANTITATIVE METHODS IN THE AACSB SCHOOLS

The status of Quantitative Methods in business education is perhaps less “standard” and less understood than any other field. This is probably even more true at the graduate than at the undergraduate level. Courses which are normally considered to be Quantitative Methods courses are often housed in a wide range of departments. Some courses which would normally be classified as Quantitative Methods courses are also housed in colleges other than Business Administration. In order to determine the current status of graduate quantitative methods curricula in schools of business, a survey was made of the member institutions of the American Association of Collegiate Schools of Business. This paper presents the survey findings.     

THE DEMAND AND SUPPLY OF QUANTITATIVE METHODS DOCTORATES IN THE SOUTH

Of critical importance to educators, students, and their colleges and universities are the demand for and supply of new Ph.D.'s in the quantitative methods field. This study examines projected academic employment conditions, over the period 1977-1981, for such doctorates in the southern region of the United States.     

BEHAVIORAL OBJECTIVES AND THE QUANTITATIVE METHODS COURSE

The topic of behavioral objectives has recently received considerable attention in the academic community. This paper contains a comprehensive overview of issues and explores the relevance of using the behavioral objective framework for teaching quantitative methods (QM) to undergraduate business administration students. Included in the paper are (1) a discussion of the nature and meaning of behavioral objectives, (2) arguments for and against their use, (3) a rationale for their use in a QM course, and (4) a series of examples demonstrating the use of behavioral objectives in a quantitative course. The evidence-consisting of expert opinion from professionals who have successfully used behavioral objectives for teaching quantitative material, the logic of the arguments for behavioral objectives, consideration of arguments against objectives along with rebuttal to these arguments, and the available empirical studies-indicates that behavioral objectives do appear to offer considerable potential for improving QM teaching. The use of behavioral objectives is worthy of thoughtful consideration by QM teachers.     

THE DEVELOPMENT OF AN INTEGRATIVE CURRICULUM IN AN UNDERGRADUATE BUSINESS PROGRAM*

This paper describes how the core portion of the undergraduate business program at Indiana University was revised to facilitate integration of basic functionally oriented decision making skills and thus help students gain a deeper understanding of the interdependence of business decisions. It relates, in essence, why and how a single computer-oriented case study which demanded a solution to a large-scale, unified finance-marketing-production problem was used at Indiana University, mentions how we plan to accomplish further integration of functional material, and provides some insight into student reaction to what was, in fact, a massive project from both student and administrative points of view.     

RANKINGS OF ACADEMIC JOURNALS AND INSTITUTIONS IN ECONOMICS

We conducted a worldwide ranking of academic institutions that produce research in a list of thirty top research journals in economics. We also computed journal rankings for the same period and hence we do not rely on weights that were computed for research carried out in earlier periods. The United States is clearly the dominant force in the top‐fifty group, but European academic institutions are well represented in the group of the top 200 universities worldwide as are universities from Asia and the Far East in particular. (JEL: A14, A10)     

ASSIMILATION TIME AS A FACTOR OF PERFORMANCE IN QUANTITATIVE ANALYSIS

The schedule, length, and number of class meetings have tended to be dictated by tradition, space availability, and instructor convenience. A significant factor which must receive attention is the assimilation time of the student. With the increased emphasis on quantitative analysis as well as the expansion of the boundaries of course content, the ability of the student to successfully absorb and digest the material must be considered. The authors have statistically studied assimilation time as a performance factor in a mathematically-oriented course. Their conclusions indicate that the length and number of class meetings can be modified to a degree with equifinality, but administrators and instructors should empirically verify the best mix for their specific needs.     

PERFORMANCE OF THE EXPECTED UTILITY METHOD AND TWO OTHER NORMATIVE METHODS IN INSURANCE DECISION MAKING*

In an experiment, thirty-six professional insurance men employed the utility method, the worry method, and the comparison method in two insurance problems to determine the appropriate insurance coverage. It was found that the best act with the utility method almost always was no insurance, whereas the best act with the other two methods tended to be complete insurance. The utility method best act rarely agreed with the subject's actual preferred act, while the comparison method best act usually was the same or almost the same as the actual preferred act. While the worry method suggests that the subjects typically are risk averse, the utility functions obtained tend to show that the subjects typically are not risk averse.     

A COMPARISON OF WEIGHTING METHODS IN POWER PLANT SITING*

The insufficient attention that too often is paid to the characteristics required of attribute weights prevents multiattribute decision rules from accurately representing preferences. The weighting summation or linear model requires weights to be proportional to the relative value of unit changes in their attribute value functions. Only then will weights accurately reflect the trade-offs decision makers are willing to make. A number of methods of choosing weights are critiqued from this perspective. Applications of weighting methods in power plant siting are surveyed, and a siting study of western Maryland is presented. Two weighting methods were used, one deriving weights from trade-offs made by decision makers and the other asking decision makers to choose weights on a scale of 0 to 10. The locations picked by the two methods differ strikingly.     

THE IMPACT OF EXTREME OBSERVATIONS ON SIMPLE FORECASTING METHODS*

In general linear modeling, an alternative to the method of least squares (LS) is the least absolute deviations (LAD) procedure. Although LS is more widely used, the LAD approach yields better estimates in the presence of outliers. In this paper, we examine the performance of LAD estimators for the parameters of the first-order autoregressive model in the presence of outliers. A simulation study compared these estimates with those given by LS. The general conclusion is that LAD does not deal successfully with additive outliers. A simple procedure is proposed which allows exception reporting when outliers occur.     

FIELD EXPERIMENTS WHICH COMPARED THE EFFECTIVENESS OF DESIGN METHODS*

The influence of “method” on the design of services was investigated in three organizational settings. Models of “Systems,”“Behavioral,” and “Heuristic” design approaches were used to plan several service programs. These plans were compared using measures of their “quality,”“acceptance,” and “innovation.” Service plans designed by the Systems approach were found to have high quality (p < .05), and service plans designed by the Behavioral approach were found to be innovative (p < .05). These findings are employed to provide guides to select a Design Method and to suggest some research issues.     

QUANTITATIVE TECHNIQUES IN MARKETING: AN ASSESSMENT OF TEACHING AND USAGE PATTERNS

This paper presents the perspectives of quantitative techniques in academics and practice. Based on the findings of an empirical study, the academicians and practitioners emphasize different techniques and prefer different journals for keeping abreast. This reveals the areas for curriculum improvement to orient the program toward the practitioners.     

THE QUANTITATIVE ROLE OF CHILD CARE FOR FEMALE LABOR FORCE PARTICIPATION AND FERTILITY

I document that the labor force participation rate of West German mothers with children aged zero to two exceeds the corresponding child‐care enrollment rate, while the opposite is true for mothers whose children are older than two but below the mandatory schooling age. These facts also hold for a cross‐section of E.U. countries. I develop a life‐cycle model that explicitly accounts for this age‐dependent relationship by including various types of nonpaid and paid child care. I calibrate this model to data for West Germany and use the calibrated model for policy analysis. Increasing the supply of subsidized child care for children aged zero to two generates an increase in the maternal labor force participation rate consistent with empirical evidence from other settings; however, this increase is too small to conclude that the lack of subsidized child care accounts for the low labor force participation rate of mothers with children aged zero to two. The response along the intensive margin suggests that a large fraction of part‐time working mothers would work full‐time if they had greater access to subsidized child care. Finally, making subsidized child care available to more women does not achieve one of the commonly stated goals of such reforms, namely to increase the fertility rate.     

A COURSE MODEL FOR TEACHING CONCEPTS RELATED TO THE SUCCESSFUL IMPLEMENTATION OF QUANTITATIVE ANALYSES

This paper examines a course model for teaching the concepts of successful implementation of quantitative analyses to both administrative and technical students. The objectives of the course were to examine the principles of effective model building and to examine the problems in communication between administrative and technical individuals. The course model utilizes case study discussions in conjunction with a series of applications projects. The cases illustrated a wide variety of implementation concepts, including concepts related to problem definition, analysis planning, information needs, systems modeling, and general model building philosophies. The applications projects gave the students varied experiences in realistic problem solving. A subjective evaluation of the student's progress in the course did show an increased perceptiveness of what constitutes good model building. The quantitative students in the course seemed to improve in their ability to develop practical solutions to problem solving, while the administrative students improved their ability to communicate with technical individuals and to perform evaluations of technical proposals for quantitative analyses.     

RATIONALIZATION OF THE SUPPLIER BASE IN THE PRESENCE OF YIELD UNCERTAINTY

An important aspect of supply chain management is the optimal configuration of the supplier base. We develop a model to determine optimal lot sizes and the optimal number of suppliers when the yield of the product delivered from each supplier is random. While small orders from a large number of suppliers can reduce yield uncertainty, fixed costs associated with each supplier provide a penalty for having too many suppliers. This is the key tradeoff addressed by our model. We look at the cases when the suppliers are identical as well as nonidentical.     

THE NORMALIZATION OF CORRUPTION IN ORGANIZATIONS

Organizational corruption imposes a steep cost on society, easily dwarfing that of street crime. We examine how corruption becomes normalized, that is, embedded in the organization such that it is more or less taken for granted and perpetuated. We argue that three mutually reinforcing processes underlie normalization: (1) institutionalization, where an initial corrupt decision or act becomes embedded in structures and processes and thereby routinized; (2) rationalization, where self-serving ideologies develop to justify and perhaps even valorize corruption; and (3) socialization, where naı̈ve newcomers are induced to view corruption as permissible if not desirable. The model helps explain how otherwise morally upright individuals can routinely engage in corruption without experiencing conflict, how corruption can persist despite the turnover of its initial practitioners, how seemingly rational organizations can engage in suicidal corruption and how an emphasis on the individual as evildoer misses the point that systems and individuals are mutually reinforcing.     

Applications and Implementation DETERMINING THE REWARDS SALESPEOPLE VALUE: A COMPARISON OF METHODS*

Although salesmanagers can attempt to motivate salespeople by manipulating their rewards, these manipulations will fail if salespeople do not value the rewards and their levels. Methods for determining valued rewards can therefore be important to those charged with their determination. This study compares three measurement schemes for assessing salespeople's valences for various rewards: functional measurement, conjoint analysis, and thermometer scaling. All three schemes produce similar conclusions as to how rewards are valued and the acceptable tradeoffs among them. Thermometer scaling outperformed the others with respect to the time it took to secure the judgments and the palatability of the task, while conjoint measurement performed least well in these respects.     

REPATRIATION OF DEBT IN THE EURO CRISIS

With the beginning of the Euro Crisis, the long‐standing trend of European financial integration reversed. Investors unwound cross‐border positions of debt obligations and increased holdings of locally issued debt. In other words, debt obligations were repatriated. We use data on bank portfolios to document three new empirical regularities of the financial disintegration: (i) repatriation affected mainly debt of crisis countries; (ii) repatriation affected mainly public debt; (iii) the public debt of crisis countries that was not repatriated was reallocated to large and politically influential countries within the Euro area. We read these results in light of standard theories of cross‐border portfolio allocation and argue that the sum of these patterns constitutes evidence for the secondary market theory of public debt.     

THE EFFECTIVENESS OF EXTENDING THE HORIZON IN ROLLING PRODUCTION SCHEDULING

In recent work, Baker [1] has investigated the use of rolling schedules for multiperiod production scheduling problems. One of his results is that the longest possible forecast horizon is not necessarily the best. He also found that the rolling schedules' effectiveness fluctuates widely depending upon the length of the forecast horizon. To smooth these fluctuations we have investigated use of forecasting to extend the problem horizon. Some of our results confirm the previous conclusions, but other results support the position that “the more information the better.”     

MADE IN THE WORLD: THE GLOBAL SPREAD OF PRODUCTION

We are moving rapidly into an age of transnational manufacturing, where things made in one country are shipped across national borders for further work, storage, sales, repair, remanufacture, recycle, or disposal; but our laws, policies, and management practices are slow in adjusting to this reality. They are often based on inaccurate premises. This article examines these premises and suggests what they imply for management of manufacturing. First, a common view is that manufacturing investment in the industrialized nations is declining and shifting to the developing countries. This is not true. Investment in manufacturing in both industrialized and developing nations is increasing and, in absolute value, there is a lot more investment in industrialized countries than in developing countries. Second, a related view argued by many is that manufacturing does not have a bright future in the rich countries. I argue that manufacturers can thrive in the industrialized countries if they learn how to add more value for the end users. They must go beyond productivity improvement to producing more technologically advanced and customized products, responding faster to changing customer demands, and appending more services to their products. Doing all this is easier in the industrialized countries because the needed skills and infrastructure are more readily available there. Third, another potentially misleading notion is related to why companies invest in manufacturing abroad. Access to low-cost production is not the main motivation in most cases; rather it is access to market. Superior global manufacturers use their foreign factories for much more: to serve their worldwide customers better, preempt competitors, work with sophisticated suppliers, collect critical marketing, technological, and competitive intelligence, and attract talented individuals into the company. They build integrated global production networks, not collections of disjointed factories that are spread internationally. Thus their investment in manufacturing abroad is not a substitute for investment at home, it is a complement. Building and managing such integrated global factor networks is the next challenge in manufacturing.     

A MODEL OF NONBELIEF IN THE LAW OF LARGE NUMBERS

People believe that, even in very large samples, proportions of binary signals might depart significantly from the population mean. We model this “nonbelief in the Law of Large Numbers” by assuming that a person believes that proportions in any given sample might be determined by a rate different than the true rate. In prediction, a nonbeliever expects the distribution of signals will have fat tails. In inference, a nonbeliever remains uncertain and influenced by priors even after observing an arbitrarily large sample. We explore implications for beliefs and behavior in a variety of economic settings.