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Econometrics is a distinct branch of economics involving the application of mathematics, statistical methods and computer science to the economic data. The results so obtained give the empirical content to economic relations. This can also be defined as the quantitative analysis of the economic phenomenon based on the parallel growth of the theories and observations.
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It also assists in calculating the competitive strength and that of the attractiveness of the industry. Here the word attractiveness portrays the general industrial net revenues. However, an unappealing industry is that where the mergers of the five forces mostly work together in order to decrease the profitability of an industry. An unappealing industry is one which is examined as a solid competition condition where all the revenues for all industries are calculated to convert into normal profits.
Respectively, this examination assists in leaning about the main pioneer of the five forces, who is Mr. Michael E. Porter belonging to The Harvard University. A change in any one of these forces usually needs a business framework to re-survey the commercial center given the general turnover in administration data.
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