How does the three below consider being the Importance of th

How does the three below consider being the Importance of the study of
Managerial Economics according to nutshell?
1. Building of analytical models
2. Making available a set of analytical methods.
3. Clarification of the various concepts used in business analysis

Solution

Importance of study of Managerial economics in building analytical model: An analytical technique (analytical method) is a procedure or a method for the analysis of some problem, status or a fact. Analytical techniques are usually time-limited and task-limited. They are used once to solve a specific issue. Opposed to management methods that affect management of the organization in a longer term. Decision analytical models are widely used in economic evaluation with the objective of generating valuable information to the end users or to the people or society who need the informations. The whole decision modelling process can be summarised in four stages: (i) a systematic review of the relevant data (ii) estimation of all inputs into the model (including effectiveness, transition probabilities and costs), (iii) sensitivity analysis for data and model specifications, and (iv) evaluation of the model.

Concept of business analysis: