Regression Analysis For Managers
Understanding the Statistics Fixed Core Requirement
The Statistics fixed core requirement develops ideas for helping to make management decisions using regression analysis a fundamental statistical methods. The ideas in this course reappear in many other MBA classes, and are part of the basic “tool kit” expected of all MBAs in their careers.
Specific important topics covered include least squares estimation, residuals and outliers, tests and confidence intervals, correlation and autocorrelation, co-linearity and randomization. The presentation relies heavily on computer software for most of the needed calculations, and the resulting style focuses on construction of models, interpretation of results, and critical evaluation of assumptions.
The Statistics Department recognizes the varying degrees to which incoming students have been exposed to statistical analysis in a classroom setting. While we encourage only those students who have recently completed substantial work in statistics to waive core coursework entirely, we recognize that some students are equipped to begin their study of statistics at a more advanced level. We therefore invite those students who have studied statistics prior to matriculation at Wharton to consider the half-credit unit course, STAT 621, which covers the statistical methodology known as regression analysis and presupposes a student’s knowledge of the fundamental methods of statistical analysis.
Waiver and Placement Process
Waiver by Credentials
Very few students (typically fewer than 20 each year) waive statistics by credentials. The students who are granted waivers-by-credential possess an extensive background in statistics, such as an undergraduate degree in statistics. The analogy is that of a CPA waiving accounting by credentials. Students allowed to waive STAT 613 must have:
- At least four college courses in statistics. Of these four courses, at least two must cover regression analysis (if you completed a regression course as a part of the CFA requirement, it can count as one of the two regression courses). The application for waiver by credential must include syllabi that describe the courses covering regression.
- Have received a grade of A- or better in both courses that cover regression analysis and a grade of B or better in the other two courses.
- Two of the four courses were taken within the last seven years.
IMPORTANT: You must highlight/annotate the courses to be considered for waiver by credential on your uploaded transcript (including whether or not course covered regression analysis), as well as provide supporting documentation (syllabi, textbook information, etc.) for your request to be considered. Failure to do so will result in your request being declined.
Waiver by Exam
Most students who pass the waiver exam will have recently completed a full-year course in business statistics that heavily emphasized regression analysis. Be aware that the waiver exam, like STAT 613, focuses upon the interpretation and critique of statistical results with most of the calculation left to the computer. For example, the waiver exam includes questions regarding the violation of assumptions that underlie regression coefficients. Students who are able to pass the waiver exam tend to share the following characteristics:
- They have had a course in regression within the past two or three years;
- The focus of their course work has been the interpretation and critique of statistical methods rather than the memorization of formulas and grind-it-out calculation;
- They understand the underlying assumptions of statistical procedures like regression and know how to check the assumptions;
- They are familiar with multiple regression in particular and some features of the analysis of variance.
You are permitted to bring a calculator to the waiver exam, though it will not be very useful.
Placement into STAT 621 by Exam
Students who possess a mastery the concepts outlined in the prerequisites for the STAT 621 course must prove that mastery by passing a placement exam administered prior to Pre-Term in order to register for STAT 621. Students may not place into STAT 621 by credential. You are permitted to bring a calculator to the placement exam, though it will not be very useful.
Students who wish to review the prerequisite material for STAT 621 and thus prepare for the placement exam are encouraged to enroll in STAT 608, a preparatory course for the placement and waiver examinations. Students who intend to sit for the placement exam are encouraged though not required to participate in this preparatory course. STAT 608 will be launched later this summer (look for further announcements on Wharton HQ) and registration for this course will take place during Pre-Term registration.