A three question math quiz: Who is ready to learn finance?

Abstract

We use Markov chain Monte Carlo (MCMC) analysis to construct a three-question math quiz to assess key skills needed for introductory finance. We begin with data collected from a ten-question criterion-referenced math quiz given to 314 undergraduates on the first day of class. MCMC indicates the top three questions for predicting overall course performance. This brief assessment explains approximately 10% of the variance in undergraduate introductory course performance. The quiz holds potential within the classroom for students, instructors, and university administration to better identify math skill deficiencies relevant to finance.

Keywords:

• Business pedagogy
• introductory finance
• prerequisites
• student performance
• undergraduate mathematics

Correction Statement

This article has been republished with minor changes. These changes do not impact the academic content of the article.

Additional information

Funding

This work was supported by a grant from the Support for Faculty Scholars Award (SFSA), Western Michigan University (WMU). Funding received from the Assessment Fellows Grant Program, Office of Assessment and Undergraduate Studies, Western Michigan University.