Faculty Scholarship 1994 - Present

Outcomes Assessment: Comp Mathematical Assessment with Performance in Principles of Finance

This study of Principles of Finance students was designed for use as a part of a regional university's school of business accreditation process by the AACSB: The International Association for Management Education. It focuses on measuring outcomes in the area of research/quantitative analysis, examining 1) start-of-semester student competency in various aspects of basic algebra, 2) the relationship between start-of-semester algebra competency and performance in finance tests, and 3) the relationship between start-of-semester algebra competency and ability to graph linear functions associated with finance. The study results indicate that students exhibited particular difficulty with three areas of algebra that are important to the study of basic finance: solving "word problems," graphing linear functions, and solving first degree linear equations. The study results also indicate high levels of correlation between start-of-semester algebra skills and finance test scores. Finally, the results indicate that many students exhibit ongoing difficulty with graphing linear functions such as the security market line, cost-volume-profit relationships, and EBIT-EPS.