As in the previous three editions, the primary objective of the fourth 'edition' of Basic Econometrics is to provide an elementary but comprehensive intro­duction to econometrics without resorting to matrix algebra, calculus, or statistics beyond the elementary level.

In this edition I have attempted to incorporate some of the developments in the theory and practice of econometrics that have taken place since the, publication of the third edition in 1995. With the availability of sophisti­cated and, user-friendly statistical packages, such as Eviews, Limdep, Microfit, Minitab, PcGive, SAS, Shazam, and Stata, it is now possible to dis­cuss several econometric techniques that could not be included in the pre­vious editions of the book. I have taken full advantage of these statistical packages in illustrating several examples and exercises in this edition.

I was pleasantly surprised to find that my' book is used not only by eco­nomics and business students but also by students and researchers in sev­eral other disciplines, such as politics, international relations, agriculture, and health sciences. Students in these disciplines will find the expanded dis­cussion of several topics very useful.

This book is written for those students of economics intent on learning the basic mathematical methods that have become indispensable for a proper understanding of current economics literature. Unfortunately, studying mathematics is for many, something akin to talking bitter-tasting medicine necessary and inescapable, but extremely tortuous. Such an attitude, referred to as “math anxiety” has its roots. I believe largely in the inauspicious manner in which mathematics is often presented to students. In the belief that conciseness means elegance, explanations offered are sometimes too brief for clarity, puzzling students, and giving them an undeserved sense of intellectual inadequacy. An illustrations, or demonstrations of “relevance,” can impair motivation. An uneven progression in the level of material can make certain mathematical topics appear more difficult then they actually are. And, finally exercise problems that are excessively sophisticated may tend to shatter students’ confidence, rather then stimulate thinking as intended.

This book has two primary purposes: (1) to provide students with a sound understanding of the principles, basic concepts, and methodology of engineering economy; and (2) to help them develop proficiency' with these methods and with the process for making rational decisions regarding situations they are likely to encounter in professional practice. Consequently, Engineering Economy is' intended to serve as a text for classroom instruction and as a basic reference for use by practicing engineers in all specialty areas (e.g., chemical, civil, electrical, industrial, and mechanical). The book is also useful to persons engaged in the management of technical activities.

As a textbook, the tenth edition is written principally for the first formal course in engineering economy. The contents of the book and the accompanying Instructor's Manual and Electronic Spreadsheets Supplement (both available from Prentice Hall) are organized for effective' presentation and teaching of the subject matter. A three-credit-hour semester course should be able to cover, the majority of topics in this edition, and there is, sufficient depth and breadth to enable an instructor to arrange course content to suit individual needs. Moreover, because

Several advanced topics are included in this book; it can also be used for a second, course in engineering economy.'      '.            ,

Every chapter and appendix has been revised and updated to reflect current trends and issues. Also, numerous exercises that involve .open-ended problem statements and iterative problem-solving skills are included throughout the book. A large portion of the 500+ end-of-chapter exercises are new, and 'many solved ex­amples representing realistic problems that arise in various engineering disciplines are presented."