Relevance of Econometric Applications for Managers 1 Relevance of Econometric Applications for Managers Srinivas Kolluru and R.K. Mishra Institute of Public Enterprise (IPE) Osmania University Campus, Hyderabad “Econometrics is about how we can use theory and data from economics, business and the social sciences, along with tools from statistics, to answer “how much” type questions.” (Hill, Griffiths, and Judge, Introduction to Econometrics, 2 nd edition, John Wiley & Sons, Inc., 2001). ABSTRACT Econometric applications have become an integral part of training in modern economics and business management. Modern managers in number of sectors are increasingly incorporating econometric applications into their businesses to establish healthy economic strategies, to develop insight, create value, optimised solutions, and outperform competi- tion. Econometric applications provide organisations with a potent set of tools to unlock the power of information and in effective decision making. The present paper focuses on emphasising the manner in which econometric applications can serve the development of business, and enhance performance of a firm by helping it go ahead of its competitors in this globalised world. 1. INTRODUCTION The continuous increasing competition, exposure to global markets, increasing costs, and declining profit margins, etc. are making modern business far more challenging than it ever was. In these circumstances, econometric applications and quantitative modeling are being used by managers in firms as a powerful means of beating the