A STRATEGY FOR INTEGRATING QUANTITATIVE TECHNIQUES INTO THE BUSINESS CURRICULUM*

Quantitative methods courses play an increasingly significant role in the programs of Schools of Business. However, maximum utilization of the concepts can occur only when these quantitative techniques have been integrated into the various functional areas via a faculty knowledgeable with such techniques and their applications. Lacking sufficient stimuli, this integrative process is observed to be one of an evolutionary nature. This article presents a strategy for stimulation of this process.     

Scaling the Semantics of Satisfaction

Social Indicators Research - Self-assessed satisfaction is typically measured on an ordinal scale ofverbal categories (``very satisfied,'' ``somewhat satisfied,'' etc.).Are the...     

Materialism and Quality of Life

An attempt is made in this paper to establish a foundation for a theory of materialism and quality of life. The theory posits that overall life satisfaction (quality of life) is partly determined by satisfaction with standard of living. Satisfaction with standard of living, in turn, is determined by evaluations of one's actual standard of living compared to a set goal. Materialists experience greater dissatisfaction with their standard of living than nonmaterialists, which in turn spills over to overall life causing dissatisfaction with life in general. Materialists experience dissatisfaction with their standard of living because they set standard of living goals that are inflated and unrealistically high. These goals set by materialists are more influenced by affective-based expectations (such as ideal, deserved, and need-based expectations) than cognitive-based ones (such as predictive, past, and ability based expectations). Materialists' ideal standard-of-living expectations are influenced by social comparisons involving remote referents, more so than comparisons involving standards that are situationally imposed. Examples of situationally-imposed standards are perceptions of wealth, income, and material possessions of family, friends, neighbors, colleagues, and so on. In contrast, examples of standards based on remote sources are perceptions of standard of living of others in one's community, town, state, country, other countries; perceptions of standard of living of others based on gender, age, education, ethnicity, occupation, and social class. This tendency to use remote referents in social comparisons may account for materialists' inflated and value-laden expectations of their standard of living. Materialists' deserved standard-of-living expectations are influenced by the tendency to engage in equity comparisons involving income and work. Thus, materialists compare themselves with others that seem to have more income and worked no harder. These equity comparisons generate feelings of inequity, injustice, anger, or envy. These emotions may also account for materialists' inflated and value-laden expectations of their standard of living. Materialists' standard-of-living expectations based on minimum needs are influenced by the tendency to spend more than generate income. This proclivity to overconsume and underproduce may be partly responsible for materialists' inflated and value-laden expectations of their standard of living.     

BUSINESS COMBINATION DECISIONS: A U.S./CANADA STUDY*

The purpose of this paper is to clarify the motives behind business combination decisions. Twenty-one favorable characteristics associated with the motivations for business combinations were selected to serve as the basis for an empirical survey. Our analysis revealed that there are seven motivational variables of varying import and that the motivations underlying business combination decisions are similar for U.S. and Canadian executives.     

SENSITIVITY ANALYSIS WITH INTERACTION EFFECTS

The purpose of this paper is to extend the sensitivity analysis methodology as it applies to linear programming. The methodology developed herein is concerned with those changes in a technological coefficient that cause simultaneous changes in the relevant cost coefficients of the objective function. By proceeding from the definitions of feasibility and optimality, the authors develop formulas for determining bounds on the extent to which a technological coefficient, which has a predetermined effect on the corresponding cost coefficient, can vary without changing the optimal set of activities. After the formulas are developed, their use is demonstrated on a product-mix problem. This technique is of interest because changes in the rate at which an input is utilized can be expected to change the cost per unit of a resulting product. This interdependence should be recognized whenever a sensitivity analysis is performed on a technological coefficient of either a cost minimization or a contribution margin maximization problem.     

The Effects of Judicial Strength and Rule of Law on Portfolio Investment in the Developing World*

Objective. Applying existing theories relating to investment risk, this article examines the effects of judicial strength and adherence to the rule of law on portfolio investment in the developing world. We aim to demonstrate that countries with higher levels of judicial strength and rule of law are more able to attract portfolio investment because they provide greater protection of property rights and a better risk environment for investors. Methods. Using time‐series data for 79 developing countries for the period 1996–2005, we employ panel‐corrected standard errors multivariate regressions to demonstrate that higher levels of judicial strength and rule of law are associated with higher levels of portfolio investment. Results. We find that a one standard deviation increase in overall judicial strength and rule of law results in more than a 50 percent increase in portfolio investment. In separate analyses, we show that a one standard deviation increase in specific measures of judicial independence, impartial courts, and protection of property rights leads to increases in portfolio investment ranging from 27 percent to 184 percent. Conclusion. Judicial strength and adherence to the rule of law are important determinants of portfolio investment in the developing world.     

A graphical summary of disparities in health care and related summary measures

In order to assess the effectiveness of government programs designed to reduce disparities in the health care minority groups receive relative to the majority white population, a proper statistical measure should be used. This article proposes a measure of and its accompanying graph, which is readily interpretable and is not affected by the number of minority subgroups examined.     

Principles for Conduct of Pest Risk Analyses: Report of an Expert Workshop

The North American Free Trade Agreement (NAFTA) and the General Agreement on Tariffs and Trade (GATT) have focused attention on risk assessment of potential insect, weed, and animal pests and diseases of livestock. These risks have traditionally been addressed through quarantine protocols ranging from limits on the geographical areas from which a product may originate, postharvest disinfestation procedures like fumigation, and inspections at points of export and import, to outright bans. To ensure that plant and animal protection measures are not used as nontariff trade barriers, GATT and NAFTA require pest risk analysis (PRA) to support quarantine decisions. The increased emphasis on PRA has spurred multiple efforts at the national and international level to design frameworks for the conduct of these analyses. As approaches to pest risk analysis proliferate, and the importance of the analyses grows, concerns have arisen about the scientific and technical conduct of pest risk analysis. In January of 1997, the Harvard Center for Risk Analysis (HCRA) held an invitation-only workshop in Washington, D.C. to bring experts in risk analysis and pest characterization together to develop general principles for pest risk analysis. Workshop participants examined current frameworks for PRA, discussed strengths and weaknesses of the approaches, and formulated principles, based on years of experience with risk analysis in other setting and knowledge of the issues specific to analysis of pests. The principles developed highlight the both the similarities of pest risk analysis to other forms of risk analysis, and its unique attributes.     

Exposure to occupational violence and the buffering effects of intra-oranizational support

This paper presents a conceptually distinct analysis of the data first reported by Leather et al. Specifically, it investigates the effects of exposure to a variety of forms of work-related violence upon work attitudes and general well-being within a sample of UK public house licensees—individuals who manage public houses and hold the licence permitting the sale of alcoholic drinks on the premises. In addition, it examines the role of social support in moderating such effects. Based upon a sample of 242 licensees, it reports a consistent interaction between exposure to such violence and the availability of perceived intra-organizational support in determining the size of any negative effects upon individual well-being, job satisfaction and organizational commitment. It is argued that exposure to all forms of work-related violence, including intimidation, verbal abuse and threat, should be seen as a potential stressor within the work environment, the negative effects of which are buffered by perceived support from within the organization, but not by that perceived to be available from informal sources such as family and friends.     

A Mechanical Interpretation of the Coefficient of Rank Correlation and other Analogies

Periodically, the pyramid or “chain letter” scheme is offered to Americans under the guise of a business dealership. Recently, the FTC ordered Glen Turner's “Dare to be Great” firm to repay 44 million dollars to participants. In order to demonstrate that the potential gains are misrepresented by promoters, a probability model of the pyramid scheme is developed. The major implications are that the vast majority of participants have less than a ten percent chance of recouping their initial investment when a small profit is achieved as soon as they recruit three people and that, on the average, half of the participants will recruit no one else and lose all their money.