Decisions Large and Small

What impact will a tax increase have on the price of gasoline at the pump? Will it be possible to sustain the Social Security program as the population of the United States ages? Should a microbrewery double its production capacity so that it can expand into new markets? What are the relative values of a home-run hitter and a star pitcher to a professional baseball team?

Finding answers to these questions depends on fundamental economic principles, mathematical models, and problem-solving methodologies. These strategies are at the heart of decisions made by governments, multinational corporations, small businesses, and individuals. They are what you study in the joint major in mathematics-economics.

Mathematical techniques from probability, statistics, optimization, and operations research are employed routinely to analyze economic models and make difficult choices in public policy, business, and finance.

The joint major is offered cooperatively by the Department of Mathematics and the Department of Economics and Business and is designed especially for students who are interested in learning to apply mathematical ideas and techniques to a wide range of problems from economics and business. The program provides a framework for you to develop a sound understanding of the fundamental principles of economics and business and of the mathematical techniques most often used for
decision-making in that realm.

Academic Opportunities

Students who pursue the joint major develop a solid
foundation in both mathematics and economics during their first two years of study. In subsequent semesters, you will undertake advanced work in econometrics, operations research, probability, statistics, and, through your choice of electives, areas of business and economics in which you are especially interested. Throughout the program, you will develop computing skills and make extensive use of computer software to explore new ideas and solve complex problems.
Seniors participate in a distinctive feature of the
program—the capstone experience—designed to ensure that you make connections among your studies in business,
economics, and mathematics. Most students enroll in Case Studies in Mathematical Modeling, a one-semester course in which they work in small groups to develop and analyze mathematical models to solve realistic problems in business or economics. Through the course, you will develop valuable communications skills by making numerous oral presentations and preparing formal written reports on the problems analyzed.
Other students choose an independent study or honors project to achieve the goals of the capstone experience. Either option will provide you with a stimulating eductional experience and help you to develop skills that will contribute to your success in a career or in later advanced study.
To enhance your academic work, you will have the chance to participate in cocurricular activities offered by both departments.
Mathematical Adventures and Diversions, a series of talks on mathematical topics, regularly draws audiences of more than 40 students and faculty. Students also may enter the William Lowell Putnam Mathematical Competition and the international Mathematical Contest in Modeling, along with various other local and regional contests. A trio of Lafayette students won the second-highest ranking in the Mathematical Contest in Modeling for the last two years and placed 54th among 453 institutions in the Putnam Competition. You have the opportunity to practice and prepare for these events through the Mathematics Problem Group, advised by Prof. Derek Smith. Students also assist in the computer laboratory and work as tutors in the Calculus Cavalry.
The Department of Economics and Business sponsors the Investment Club. The campus chapter of Omicron Delta Epsilon, the national economics honor society, provides tutoring services to students in economics and business courses and operates a speaker’s bureau.

Investment Club Manages 6-Digit Fund

The student-run Investment Club manages an investment portfolio worth $429,000. About 50 students attend biweekly meetings and gain experience in business finance and investment. They use their investment skills to buy stocks and bonds, which account for 90 percent of the fund.
Of the roughly three dozen similar clubs across the country, about half are managed by students working on master’s degrees in business administration. At Lafayette, the fund is managed by undergraduates who are majoring in a variety of disciplines. First-year students are included, too. “Our club is inclusive and we like to focus on students who may know less about the market,” says Prof. Donald Chambers, the club’s faculty adviser.
The investments produce about $3,000 a year in
dividends and other income. Half the money is used for club expenses (including a trip to Wall Street); the other half is donated to the college. In the past, the money helped buy library books and enabled prospective students from minority groups to visit the campus.

After Graduation

Students who complete the mathematics-economics major develop valuable skills which are recognized by prospective employers. Accounting, actuarial science, finance, and systems analysis are among the areas that have been most attractive to graduates.
Among majors graduating in 2001, 86 percent accepted full-time employment and 14 percent were travelling, volunteering, or working part-time by choice. Companies that have hired recent graduates include Accenture, Bloomberg LP, Charles Schwab & Co., Deutsche Bank, KPMG, U.S. Treasury Financial Crimes Enforcement, JP Morgan Chase & Co., Lehman Brothers, Towers Perrin, PNC Financial Services Group, and Heartland Securities.
Starting salaries for majors in the class of 2001 ranged from $34,000 to $63,000, with a mean of $46,600.
In addition to helping you prepare for immediate employment, the major provides an excellent background for advanced study in business or economics. Students have enrolled in Ph.D. programs in economics and pursued M.B.A.s.

Faculty

Students have an opportunity to work closely with faculty from both the Department of Economics and Business and the Department of Mathematics, two of the largest departments at Lafayette. The program is administered by the Department of Mathematics and each upper-level major has a faculty adviser from that department.

Chester J. Salwach
Associate Professor and Head, Mathematics
(610) 330-5270
salwachc@lafayette.edu

For general information:
Office of Admissions
Lafayette College
Easton, PA 18042
(610) 330-5100
FAX (610) 330-5355
admissions@lafayette.edu