Data analysis to support economic investment and business innovationEconometrics

business.monash.edu

I initially enrolled in a Bachelor of Arts, but I quickly started enjoying economics and transferred into a commerce degree. From my economics units I discovered econometrics and just loved it. It seemed odd at first, because I didn’t really enjoy maths that much in high school. And while econometrics is maths-focused, I’ve found it really enjoyable and the application to real-world problems is extremely rewarding.Adrian Crosland Course: Bachelor of Commerce/Bachelor of Economics. Majors: Econometrics and Banking and Finance

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.

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 specific 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.

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.

Careers in econometrics or business statisticsQuantitative 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 qualified candidates.)

Monash Business School’s 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 finance companies (stock brokering, asset allocation, risk analysis)

— Superannuation and insurance firms (actuarial analysis, risk analysis)

— Consulting firms (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).

Monash Business School has several options for students interested in studying econometrics or business statistics:

Bachelor of Economics (stream in Mathematical Economics and Econometrics)

Bachelor of Business (major in Business Statistics)

Bachelor of Commerce (major in Econometrics)

Why study econometrics or 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 finance, marketing, management consulting and the public sector will increasingly go to graduates with excellent numeracy skills who can apply theory to solve real problems.

Our degrees and majors

If you want to pursue a career in econometrics or business statistics you can choose to study our specialist Bachelor of Economics, or a major in econometrics or business statistics in our comprehensive courses.

Bachelor of Economics (stream in Mathematical Economics and Econometrics)In this specialist degree you will have genuine depth of study and learn how to use economic theories and analytical tools to figure out how the economy is operating. You will also identify and communicate the impacts of government policy in both domestic and international environments.

Location: Clayton campus

Business statisticsAs the speed and volume of data available to companies has amplified, understanding the implications of customer and competitor data has become essential for business decision-making. A major in Business Statistics will teach you how to extract meaningful information from data, and how to apply statistical modelling and forecasting techniques to business environments. You’ll develop skills in using computer-based statistical models and learn how to analyse and communicate statistical information to people within an organisation.

Offered in: Bachelor of BusinessLocation: Caulfield campus

EconometricsThe way in which companies collect, store and use data has been revolutionised by the incorporation of the internet and mobile devices into everyday life. Unprecedented speeds and volumes mean companies now need new ways of analysing and using this information quickly and efficiently, to drive business success. Econometrics uses the principles of mathematics and statistics to analyse and interpret data to inform economic and business decision-making. In this major you will learn how to analyse, implement and construct econometric models, and develop strong skills in economic and business forecasting.

Offered in: Bachelor of CommerceLocation: Clayton campus

Related study areas

Econometrics and business statistics are diverse and complex fields with many branches and specialist areas. If you’re interested in econometrics you may also want to consider our related options in actuarial science.

Bachelor of Actuarial ScienceAre you an analytical and mathematical thinker looking for a way to turn your skill with numbers into a career?

If so, Actuarial Science at Monash is for you. This specialist degree will teach you how to apply your mathematical talent to the commercial world. Actuaries identify, analyse and assess risk. They use mathematical and econometric models to forecast real-life scenarios, such as the likelihood of economic or property losses and their impacts on insurance premiums, superannuation or other financial investments. A Bachelor of Actuarial Science may enable you to achieve Part I of the Actuaries Institute of Australia professional qualification, which you need to work as a professional actuary.

Location: Clayton campus

Actuarial studiesA major in Actuarial Studies gives you the skills to identify, analyse and quantify risk, using mathematical, econometric and financial models. You’ll learn about forecasting and econometric modelling tools, and develop the technical skills to apply these tools to a wide range of business settings across the public and private sector.

Offered in: Bachelor of CommerceLocation: Clayton campus

A world of opportunity

Econometrics and business statistics gives you the knowledge to turn your passion for mathematics and numbers into a successful and profitable career.

At Monash Business School, teaching and research in econometrics and business statistics has a world-class reputation. As leaders in these vital areas, you will find 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 School include a compulsory business statistics component.

Make maths your business

Econometrics or business statistics units as electivesAs well as studying a degree or major in econometrics or business statistics, you can also study econometrics and business statistics units as electives within most of our degrees. Subjects within econometrics or business statistics, 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 or business statistics electives may complement your studies in accounting, banking and finance, economics, management and marketing, just to name a few.

Econometrics or business statistics in a double degreeEconometrics and business statistics are versatile study areas which are relevant to every industry imaginable — which is why econometrics or business statistics are a good complement to any double degree. Monash University has one of the largest double degree programs in the country, which means we have plenty of combinations that will benefit your econometrics or business statistics studies.

We also have a number of options available if you’re interested in studying a double degree:

— Study a double degree in business by pairing a Bachelor of Business (majoring in Business Statistics) with a specialist degree in accounting banking and finance or marketing.

— Study a double degree in commerce by combining your Bachelor of Commerce (majoring in Econometrics) with a specialist degree in actuarial science, finance or economics.

— Pair either a Bachelor of Business (with a major in Business Statistics) or Bachelor of Commerce (with a major in Econometrics) as part of a double with another faculty in the university.

Visit our website business.monash.edu for more information on double degrees.

Internships and industry-based learningUndertaking an elective in industry–based learning is a great way to put your studies into practice, and learn valuable skills that will make you more work-ready at the end of your degree.

There are a number of opportunities for econometrics or business statistics students to take part in internship units. Some of our students have interned with the Department of Treasury and Finance or with consulting firms and banks.

You can find out more about our internship programs at business.monash.edu

Did you know econometrics and business statistics is ranked among the best jobs in the world?1

As reported in the Wall Street Journal, CareerCast.com, a US-based career website, ranked 200 jobs from best to worst based on five criteria: physical demands, work environment, income, stress, and hiring outlook.

To compile its list, the firm 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 among the Top 50 best jobs, including:

— Actuary (No.1)

— Mathematician (No.3)

— Statistician (No.4)

— Data Scientist (No.6)

— Economist (No. 15)

— University Professor (No. 29)

You can see the complete list of jobs at www.careercast.com/jobs-rated

For more information visit our website business.monash.edu

“The econometrics program at Monash Business School is internationally renowned and competitive. You will learn from some of the best academics in the field, and the program is a perfect mix of theoretical and applied skills, so whether you’re inclined to go down the academic route or into the workforce you will have the skills and knowledge for success.”

“When I enrolled at Monash Business School I knew I wanted to study Economics and Finance. I didn’t even know what econometrics was until I took my first unit and fell in love with it – something just clicked, I knew I had found the right area of study for me to pursue, and the combination of three maths-based majors is a winner.”

“I chose to study at Monash Business School because it has a reputation for providing excellence in education and research in econometrics. It provides students with the infrastructure and environment that are conducive to carry out study and research. The lecturers and staff members have shown great expertise and dedication in their respective areas, which all contributed to enhancing my university experience.”

James Maine

Course: Bachelor of Commerce/ Bachelor of Economics

Alyssa Buchardt

Course: Honours degree in Econometrics

Chris Tse

Course: Honours degree of Bachelor of Economics

What our students say...

The information in this brochure was correct at time of publication (August 2015). Monash University reserves the right to alter this information should the need arise. You should always check with the relevant Faculty office and Monash website when considering a course. CRICOS Provider: Monash University 00008C