Managerial Economics Nov 26

TABLE OF CONTENTS

.......................................................................................................Grading Rubrics

Abstract ( optional)

Acknowledgment ( ooptional )

Introduction………………………………………………………………..10%

-purpose

-background

-research question

-how the remaining paper is organized

Literature Review and definition of varaibles……………………………5%

- theoretical relationship

-two scholarly articles in support of the relationship

Descriptive Statistics of the dependent variable……………………………..20%

- frequency table distribution( class intervals and frequency)

- mean, standard deviation, pie chart ( according to the intervals)

Inferential statistics ( is there a realtionship?)……….. ………………….....30%

- linear regression model

- regression equation

- hypothesis testing

Data Analysis…………………………………………………………………20%

t-tests

- p-value

- Confidence Interval

- r-square

Summary…………………………………………………………………….…5%

-brief description of key headings

Conclusion ( is there empircal evidence to support the research question)……5%

Recommendation( lager sample size with more explanatory variables)….. …2%

References………………………………………………………………………3

Appendix

- Table showing data for Y and X varaibles

TOTAL ........................................................................................................... 100%

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King Graduate School Research Center [email protected] Updated 9/16/2017

HOW DO I SEARCH FOR INDUSTRY INFORMATION?

 Develop and use an understanding of related industry codes (i.e. – NAICS and SIC).

 When viewing data, note the unit of measurement, such as thousands of dollars, billions of dollars, etc.

 Use Library Resources. Some resource highlights:

o My Monroe > Library Resources > Databases > Business Insights: Essentials / Hoover’s

Academic / Mergent Online

 Business Insights Essentials

 If the related, six-digit NAICS code has already been identified, type the code into

the search box at the top of the webpage, change the dropdown menu next to the

search box to “Industry” and click on “Search”. Click on the name of the industry to

load the industry main page.

o Advance to the “View ‘Key Information’” step.

 If the related, six-digit NAICS code has not already been identified, enter the name

of a major company which currently practices in the industry, and click on

“Search”.

o Click on company name.

o Under “Industries”, click on the desired industry to load the industry main

page.

 View “Key Information”.

o “Key Information” will provide historical datasets.

o Click on each of the following fields: Number of Companies, Employees,

Annual Revenue, Sales Per Employee.

 After clicking on a field, click on “Table”.

 View the historical information.

 Alternatively, click on “Download as CSV”.

 Return to the industry main page by using the onscreen back arrow button.

 Under “Industry Information”, click on “Industry Essays” then the appropriate entry.

o The essays contain information such as industry: organization, structure,

background, development, current conditions, leaders, workforce,

technology, etc.

 Return to the industry main page by using the onscreen back arrow button.

 Under “Industry Information”, click on “Market Share Reports”.

o Each search result contains very brief but specific information about the

companies which hold/held the top market shares in a related sub-industry.

o From the search results screen, use the options on the left-hand side of the

page to search for a particular sub-industry.

 Return to the industry main page by using the onscreen back arrow button.

 Under “Industry Information”, click on “Rankings”.

o Each search result contains very brief but specific information about the top

ranked companies in a related sub-industry, based on various metrics,

such as: sales, revenue, annual growth, etc.

 Hoover’s Academic

 Switch “All Categories” next to the search box to “Industries”.

 Search the related six-digit industry code.

 Click on the desired industry.

 Click on “Description”.

o The description contains information such as: competitive landscape,

products, operations, technology, sales, marketing, finance, regulation,

regional/international issues, human resources, etc.

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King Graduate School Research Center [email protected] Updated 9/16/2017

 Click on “Associated Industry Codes” to view associated NAICS and SIC codes.

 Click on “Financials” to view some financial industry data.

 Click on “Trends & Opportunities” to view an assessment of current issues, for

example: areas of sales growth, newly identified markets or growth potential, areas

with increased demand, successful practices, technological advances, etc.

 Click on “Call Preparation Questions” to get quickly updated on issues that are

relevant at all levels of a company practicing in the industry.

o The section will briefly assess the industry by: operations, products,

facilities, customers, marketing, pricing and competition, regulations,

research and development, imports, exports, organization, management,

financial analysis, business/technology strategies, etc.

 Click on “Quarterly Industry Updates” for the latest updates, by quarter, within the

last year.

 Click on “Executive Insight” for the issues that are most pressing for industry:

CEOs, CFOs, CIOs, Human Resources directors, and Sales/Marketing directors.

 Click on “Business Challenges” for the industry’s current critical issues/challenges.

 Mergent Online

 Click on “Industry Analysis”.

o Under “Search by Industry”, check the related, broad industry.

 If desired, under “Search by Region”, check the desired region(s).

 Click on “Search”.

 Click on the link under “View” or “Report” to view desired report(s).

 Use authoritative web resources:

o U.S. Census Bureau, NAICS - https://www.census.gov/eos/www/naics/

 Conduct a keyword search.

o U.S. Census Bureau, Economic Indicators pertaining to industry -

https://www.census.gov/economic-indicators/

 Wholesale trade industries

 Click on “Monthly Wholesale Trade”.

 Click on “Excel” next to the desired report in the “Latest Monthly Wholesale Trade

Report” section, which will provide historical datasets by NAICS codes related to

wholesale trade industries.

 Service industries

 Click on “Quarterly Services Survey”.

 At the bottom of the webpage, click on “Historical Data”.

 Under “Archived Reports” click on the desired years to access historical datasets

by NAICS or SIC codes related to service industries.

 Retail trade and food industries

 Click on “Quarterly Financial Report – Retail Trade” to access historical datasets

by NAICS codes related to retail trade and food industries.

 Click on “Time Series/Trend Charts”.

 Under the “Select the report/survey from which you wish to retrieve data” drop-

down menu, select “Monthly Retail Trade and Food Services”.

 Under the “Select Industry or Category” drop-down menu, select the desired

industry.

 Click on the “Get Data” button, and view/export data from the bottom of the page.

3

King Graduate School Research Center [email protected] Updated 9/16/2017

HOW DO I SEARCH FOR COMPANY INFORMATION?

 When viewing data, note the unit of measurement, such as thousands of dollars, billions of dollars, etc.

 Use Library Resources. Some resource highlights:

o My Monroe > Library Resources > Databases > Business Insights: Essentials / Hoover’s

Academic / Mergent Online

 Business Insights Essentials

 Enter the name of a major company that currently practices in the industry, and

click on “Search”.

o Click on company name.

 View “Key Information”.

o “Key Information” will provide historical datasets.

o Click on each of the following fields: Net Revenue, Employees, Sales Per

Employee.

 After clicking on a field, click on “Table”.

 View the historical information.

 Alternatively, click on “Download as CSV”.

 Return to the company main page by using the onscreen back arrow button.

 Under “Company Information, click on ‘Company Chronology” then the appropriate

entry.

o The chronology provides a year-by-year timeline of notable dates in the

company’s past.

 Return to the company main page by using the onscreen back arrow button.

 Under “Company Information, click on “Company Histories” then the appropriate

entry.

o The history is a narrative description of the company’s origins and past,

notable moments.

 Return to the company main page by using the onscreen back arrow button.

 Under “Company Information, click on “Financials”, which are approximately five

years of -

o Income Statements, Balance Sheets, Cash Flows and Ratios.

 Return to the company main page by using the onscreen back arrow button.

 Under “Company Information”, click on “Investment Reports”, which are -

o Industry/company reports, which summarize, evaluate and forecast about

the company.

 Return to the company main page by using the onscreen back arrow button.

 Under “Company Information”, click on “Market Share Reports”.

o Each search result contains very brief but specific information about the

companies which hold/held the top market shares in a related sub-industry.

o From the search results screen, use the options on the left-hand side of the

page to search for a particular sub-industry.

 Return to the company main page by using the onscreen back arrow button.

 Under “Company Information”, click on “Rankings”.

o Each search result contains very brief but specific information about the top

ranked companies in a related sub-industry, based on various metrics,

such as: sales, revenue, annual growth, etc.

 Return to the company main page by using the onscreen back arrow button.

 Under “Company Information, click on “SWOT Reports” then the appropriate entry

to view a report.

4

King Graduate School Research Center [email protected] Updated 9/16/2017

 Hoover’s Academic

 Switch “All Categories” in the drop-down menu next to the search box to

“Companies”.

 Search for the desired company and select the appropriate entry.

 Under “About This Company”, click on “Company Description” to read a current

description of the company in terms of operations, geographic reach, sales,

marketing, financial performance and strategy.

 Under “About This Company”, click on “Company History” to read a narrative

description of the company’s history.

 Under “Financial”, click on “Financial Summary”, “Balance Sheet”, “Cash Flow”,

“Income Statement”, “Historical Financials and “SEC Filings” to view the indicated

data.

 Mergent Online

 Search for the desired company name in the “Company Search” field.

 Under the “Company Details” tab view:

o History, Long Term Debt, Capital Stock, Earnings Estimates, etc.

 Under the “Ownership” tab view:

o Institutional Holdings, Insiders, Insider Trades, etc.

 Under the “Company Financials” tab view:

o Balance Sheet, Income Statement, Retained Earnings, Cash Flow, Ratios,

etc.

o Under “As Reported”, change the following to view historical datasets:

 Change the report from “Balance Sheet” to “All Sections”.

 Change the time frame via drop-down menu to “All Available Years”

 Under the “News” tab, view company news in reverse chronological order.

 Official company websites

o Locate historical datasets from: annual reports, investor reports, investor relations, financial

information/data, stock information, etc.

 SEC EDGAR Company Search - https://www.sec.gov/edgar/searchedgar/companysearch.html

o Search for the company and click on the appropriate entry.

o Search for Annual reports by typing “10-K” in the “Filing Type” field and clicking on the “Search”

button.

 Look at each year’s report for the same data point, such as total revenue.

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King Graduate School Research Center [email protected] Updated 9/16/2017

HOW DO I SEARCH FOR ECONOMIC INDICATOR INFORMATION?

 When viewing data, note the unit of measurement, such as thousands of dollars, billions of dollars, etc.

 Use authoritative web resources. Some examples are:

o Bureau of Economic Analysis (a division of the U.S. Department of Commerce) -

https://www.bea.gov/

 Click on the “Interactive Data” tab.

 Click on any of the options, such as “GDP & Personal Income”, “Input-Output”, etc.

 For example, click on “GDP & Personal Income”.

o Click on “Begin using the data…”

o Click on “Section 1 – Domestic Product and Income”.

o Click on “Table 1.1.5 Gross Domestic Product”.

o Click on “Modify”.

o Change “Series” to “Annual”.

o Click the checkbox next to “Select All Years”.

o Click on “Refresh Table”.

o Line 1 lists GDP historical datasets.

o U.S. Census Bureau, Economic Indicators - https://www.census.gov/economic-indicators/

 Construction Spending

o Click on “Construction Spending”.

o Click on the desired report to access historical datasets about the value

of construction put in place during a given time period.

 New Residential Sales

o Click on “New Residential Sales”.

o Click on the “Historical Data” tab.

o Click on the desired “XLS” document, which will provide historical

datasets about houses sold, sale prices, etc. during a given time period.

 New Residential Construction

o Click on “New Residential Construction”.

o Click on the “Historical Data” tab.

o Click on the desired “XLS” document, which will provide historical

datasets about housing units started, completed, etc. during a given time

period.

 Rental Vacancy Rate or Homeownership Rate

o Click on “Rental Vacancy Rate” or “Homeownership Rate

o Under the step 4 drop-down menu, select the desired indicator: Rental

Vacancy Rate, Homeowner Vacancy Rate, Homeownership Rate, or

Seasonally Adjusted Homeownership Rate.

o Click on the “Get Data” button, and view/export data from the bottom of the

page.

o World Bank - https://data.worldbank.org/

 Explore historical datasets.

o International Monetary Fund (IMF) - http://www.imf.org/en/Data

 Explore historical datasets.

INDUSTRY AND RESEARCH QUESTION

Your topic is the Industry that you will analyze as your Term paper

It is based on conducting a secondary research, preferably an Industry that you are interested in.

For a list of some selected Industries, see page 205: Table 7-1

Industry: General Merchandizing NAICS: a 6-digit code defining the industry You will gather quantitative data using the NAICS 6-digit

See how to access Monroe Data

Merchandizing Industry

Topic: Merchandizing Industry

A topic is broad area of enquiry as follows:

Aspect of study

Research Question: Focuses on some aspect of the Industry

Topic: : Industry

Focus on Performance, more specific than the Industry as a whole

Research Question is a question about the industry’s performance or an inquiry into some aspect of the industry.

Aspect of study

Developing your Research Question

Steps: 1. Identify the outcome variable such as Industry’s performance (How is this measured? Profits? Revenues? ROI?)

2. List the factors influencing performance such as

a) Market Size

b) Technology

c) Concentration Ratio

d) Entry

Choose at minimum any three explanatory variables, such as (1) Entry, (2) Technology, and (3) market size.

Next, formulate a research question about how the relationship between any one of the independent variables and the dependent variable (outcome variable). For example:

Research Question: Do entry affect the Merchandizing Industry Performance for the period 2000-2018?

DO NOT: Do entry and technology affect the Merchandizing Industry Performance for the period 2000-2018?

Factors influencing the outcome variable (Y)

Industry: Research Question as the Title

Profitability depends on many factors called explanatory variables such as

1. Entry, firms entering the industry (X1)

2. Technology (X2)

3. Market Size (X3)

Profitability/ Performance

Developing the research question After you have identified your Industry, proceed to develop your research question which about your Title. It is a question that clearly expresses your inquiry of how the variables are connected to understand the outcome.

Note: The research question will focus on the relationship between a single independent variable and the dependent variable. The inclusion of multiple explanatory variables in the model acts as controls, i.e., attempting to create a realistic environment in which the explanatory variable and dependent variable interacts.

NOTE: The research question must always be in the from of a question for which you will try to find data to resolve

TITLE: Do entry affect the Merchandizing Industry Performance for the period 2000-2022?

Dependent Variable: Industry’s Profitability (Y)

Independent Variable 1. Entry (X1)

Independent Variable 2. Technology (X2)

Independent Variable 3. Market Size (X3)

Research is about defining your problem and then gather data to resolve it.

You will collect data for the past 20 years on three variables:

1. Profitability measured as Industry Sales/Number of employees

2. Number of firms entering the industry per year over the period

3. Technology, measured as spending on R &D

4. Market Size, measured either as total number of firms or dollars

USE 6digit NAICS codes

Page 1 of 1

THIS IS DUE OCTOBER 5, 2023

Student Name

Potential Research Questions

1. [NAIC/SIC Code: xxxx] Does entry effect the Merchandizing Industry Performance for the period 2000-2018? Dependent Variable – Industry’s Profitability (measured as industry sales in $M/$B) Independent Variable 1 – Entry (measured as net number of new firms each year) Independent Variable 2 – Technology (measured as spending on R&D per year in $M/$B) Independent Variable 3 – Market Size (measures as industry share as % of economy)

2. [NAIC/SIC Code: xxxx] Enter research question 2 here?

Dependent Variable – enter here (data source here) Independent Variable 1 – enter here (data source here) Independent Variable 2 – enter here (data source here) Independent Variable 3 – enter here (data source here)

Page 1 of 1

THIS IS DUE OCTOBER 5, 2023 (Please submit this 1-page (Word Doc Format) via email to Professor)

Student Name

Potential Research Questions

1. [NAIC/SIC Code: xxxx] Does entry effect the Merchandizing Industry Performance for the period 2000-2018? Dependent Variable – Industry’s Profitability (measured as industry sales in $M/$B) Independent Variable 1 – Entry (measured as net number of new firms each year) Independent Variable 2 – Technology (measured as spending on R&D per year in $M/$B) Independent Variable 3 – Market Size (measures as industry share as % of economy)

2. [NAIC/SIC Code: xxxx] Enter research question 2 here?

Dependent Variable – enter here (data source here) Independent Variable 1 – enter here (data source here) Independent Variable 2 – enter here (data source here) Independent Variable 3 – enter here (data source here)