How Much Math Do Students Need to Succeed in Business and Economics Statistics? An Ordered Probit Analysis

Abstract

Because statistical analysis requires the ability to use mathematics, students typically are required to take one or more prerequisite math courses prior to enrolling in the business statistics course. Despite these math prerequisites, however, many students find it difficult to learn business statistics.In this study, we use an ordered probit model to analyze the impact of alternative prerequisite math course sequences on the grade performance of 1,684 business and economics statistics students at a large Midwestern university. In addition, we show how imposing a minimum grade requirement of C- for the math prerequisite course would influence student success in the business statistics course. Although several studies have examined the impact of different math skills, our study is the first to provide a detailed analysis of the impact of different prerequisite math course sequences on student performance in business statistics. We demonstrate that, other things the same, taking more math credit hours, taking math courses that emphasize calculus, and imposing a minimum grade of C- on the prerequisite math course have significant positive impacts on student grade performance in the business and economics statistics course.