Abstract

The primary objective of this paper is to identify the importance of prior skill and knowledge of mathematics in influencing performance of students in introductory first year level economics subjects using data from a regional university in Australia. The study results have identified positive and significant relationships between the two factors. Results of this study are similar to some others in the area. However, this study is based on a more appropriate and sophisticated analytical model (Ordered Probit Model) as compared to OLS model used in the other studies. Findings of this analysis also suggest that the level of mathematics taken prior to university have a strong predictive power on students’ performance. The findings have strong implications for learning and teaching practices in first year level subjects and on student retention rates for the Australian universities in general.