Albert Madansky is the H.G.B. Alexander Professor of Business Administration Emeritus in the University of Chicago Booth School of Business. He has been a faculty member at Chicago Booth since 1974, and in addition to teaching a variety of courses in statistics and econometrics, he has taught courses in business economics, information science, marketing, business policy, as well as a course entitled “Great Books in Business.”
He also served as director of the Center for Management of Public and Nonprofit Enterprise, director of the Center for International Business and Education Research, associate dean for PhD studies, and deputy dean for Faculty. In addition, he was editor-in-chief of its Journal of Business.
He is the author of many scholarly articles and books, including “Foundations of Econometrics” and “Prescriptions for Working Statisticians.” He is also the coauthor of the Gastineau-Madansky model for stock option pricing and of the Edmundson-Madansky inequality used in stochastic linear programming. For his research in statistics, Madansky has been named a fellow of the Center for Advanced Study in the Behavioral Sciences, a fellow of the American Statistical Association, a fellow of the Institute of Mathematical Statistics, and a fellow of the Econometric Society. He was also a 2005 recipient of the American Statistical Association Founders Award.
His long career includes being a researcher at the RAND Corporation; senior vice president at the Interpublic Group of Companies; president of Dataplan, Inc.; and cofounder and vice president of The Analytical Group, Inc., a software development and data processing firm for the marketing research industry. His prior academic positions include terms as professor of mathematics and econometrics at UCLA, professor of marketing and econometrics at Yale, and chairman of the department of computer sciences at City College of New York.
He has been a member of the board of trustees of Analytical Services, Inc., a not-for-profit firm providing consulting services primarily to the Department of Homeland Security and to the Department of Defense, as well as a consultant to the National Academy of Science and the RAND Corporation. He is president of Madansky and Associates, Inc., a consulting firm that specializes in statistical analysis in support of marketing research for Sears, Schlitz, Pillsbury, Quaker, and numerous advertising agencies and marketing research firms and of litigation research for numerous law firms.
All of his education was at the University of Chicago, with an undergraduate degree from the College, and advanced degrees from the department of statistics. His graduate studies included a substantial number of courses at Chicago Booth.
Foundations of Econometrics Amsterdam: North-Holland (1976).
Financial Reporting by State and Local Government Units Chicago: University of Chicago Press (1977) (with Sidney Davidson, David O. Green, Walter Hellerstein, and Roman L. Weil).
Prescriptions for Working Statisticians New York: Springer-Verlag (1988).
Elementary Bayesian Statistics United Kingdom: Edward Elgar (1997) (by Gordon Antelman, edited with Robert McCulloch).
“Estimation of Multimagazine Readership,” Journal of Business 31 (1958) 235-42. (with Seymour Banks).
“Use of Tolerance Limits in Missile Evaluation,” Proceedings of the Statistical Techniques in Missile Evaluation Symposium, Virginia Polytechnic Institute, Blacksburg (1958) 43-52.
“The Fitting of Straight Lines When Both Variables are Subject to Error,” Journal of the American Statistical Association, 54 (1959) 173-205 (reprinted in Readings in Econometric Theory, J.M. Dowling and F.R. Glahe (eds.) Boulder CO: Colorado Associated University Press (1970) and in the Bobbs-Merrill Reprint Series in Economics as Econ-195).
“Least Squares Estimation in Finite Markov Processes,” Psychometrika 24 (1959)137-44.
“Bounds on the Expectation of a Convex Function of a Multivariate Random Variable,” Annals of Mathematical Statistics 30 (1959) 743-46.
“Inequalities for Stochastic Linear Programming Problems,” Management Science 6 (1960) 197-204.
“Determinantal Methods in Latent Class Analysis,” Psychometrika 25 (1960) 183-98.
“On the Solution of Two-Stage Linear Programs Under Uncertainty,” Proceedings of the Fourth Berkeley Symposium on Mathematical Statistics and Probability, Vol. 1, Berkeley: University of California Press (1961) 165-76 (with George B. Dantzig).
“Parameter-Free and Nonparametric Tolerance Limits: The Exponential Case,” Technometrics 4 (1962) 75-95 (with Leo A. Goodman).
“Methods of Solution of Linear Programs Under Uncertainty,” Operations Research 10 (1962) 463-71.
“More on Length of Confidence Intervals,” Journal of the American Statistical Association 57 (1962) 586-9.
“Dual Variables in Two-Stage Linear Programming Under Uncertainty,” Journal of Mathematical Analysis and Applications 6 (1963) 97-119.
“Tests of Homogeneity for Correlated Samples,” Journal of the American Statistical Association 58 (1963) 97-119.
“Linear Programming Under Uncertainty,” in R.L. Graves and P. Wolfe (eds.) Recent Advances in Mathematical Programming, New York: McGraw-Hill (1963) 103-110.
“On the Efficiency of Three-Stage Least Squares Estimation,” Econometrica 32 (1964) 51-6 (reprinted in Simultaneous Equation Estimation, Carl F. Christ (ed.) England: Edward Elgar Publishing (1994)).
“Instrumental Variables in Factor Analysis,” Psychometrika 29 (1964) 105-13.
“Spurious Correlation Due to Deflating Variables,” Econometrica 32 (1964) 652–5.
“Admissible Communalities in Factor Analysis,” Psychometrika 30 (1965) 455-8.
“Approximate Confidence Intervals for the Reliability of Series and Parallel Systems,” Technometrics 7 (1965) 495-503.
“Statistical Notes on Cloud-Seeding Projects,” Weather and Climate Modification, Vol. II. Washington, D.C.: National Academy of Sciences, National Research Council Publication No. 1350 (1966) 184-91.
“Statistical Estimation Procedures for the 'Burn In' Process,” Technometrics 10 (1968) 51-62 (with F. Proschan, R. Barlow, and E. Scheuer).
“Latent Structure,” International Encyclopedia of the Social Sciences New York: MacMillan and Free Press, Vol. 9 (1968) 33-8. (see also International Encyclopedia of Statistics New York: MacMillan (1978) 499-505).
“Models, Games and Data Banks: Implications for Data Collection,” A New Measure of Responsibility for Marketing, K. Cox and B.M. Enis (eds.) Chicago: American Marketing Association (1968) 236-8.
“Uncertainty,” Systems Analysis and Policy Planning, E.S. Quade and W.I. Boucher (eds.) New York: American Elsevier (1968) 81-96.
“Efficiency of the Sample Mean When Residuals Follow a First Order Stationary Markoff Process,” Journal of the American Statistical Association, 63 (1968) 1237-46 (with J. Chipman, J.W. Pratt, and K.R. Kadiyala).
“Approximate Confidence Regions for Constraint Parameters,” Multivariate Analysis II, P.R. Krishnaiah (ed.) New York: Academic Press (1969) 261-86 (with Ingram Olkin).
Comments on R.L. Basmann paper, in Frontiers of Quantitative Economics, Vol. II, M.D. Intriligator and D.A. Kendrick (eds.) Amsterdam: North Holland (1974) 276-81.
Comment on K.S. Palda paper, in Journal of Law and Economics 18 (1975) 773-4.
“Optimal Initial Conditions for a Simulation Problem,” Operations Research 24 (1976) 572-7.
“Some Comparisons of the Use of Empirical and Lognormal Distributions in Option Evaluation,” Proceedings of the Seminar on the Analysis of Security Prices, University of Chicago: Center for Research in Security Prices, 22 (1977) 155-68 (reprinted in G. Gastineau, The Stock Options Manual, Second Edition, New York: McGraw-Hill (1979) 324-31).
“Why Simulations Are an Unreliable Test of Option Strategies,” Financial Analysts Journal 35 (1979) 61-76 (with Gary Gastineau).
“New Methods of Telephone Interviewing: A&S/CATI,” Proceedings XXXII ESOMAR Congress (1979) 189-200 (with I. Roshwalb and L. Spector).
“On Conjoint Analysis and Quantal Choice Models,” Journal of Business 53 (1980) S37-44.
S&P 500 Stock Index Futures Evaluation Tables, Financial Analysts Journal 39 (1983) 68-76 (with Gary Gastineau) (reprinted in F.J. Fabozzi and G.M. Kipnis, Stock Index Futures, Homewood, IL: Dow Jones-Irwin (1984) 99-110).
Some Comments on the CBOE Call Options Index, Financial Analysts Journal 40 (1984) 58-67 (with Gary Gastineau).
“Options on Stock Indexes and Stock Index Futures: Pricing Determinants, Role in Risk Management, and Option Evaluation, in F.J. Fabozzi and G.M. Kipnis,” Stock Index Futures Homewood, IL: Dow Jones-Irwin (1984) 278-86 (with F.J. Fabozzi and Gary Gastineau).
Comment on Freedman-Navidi paper, Statistical Science 1 (1986) 28-30.
“On Biblical Censuses,” Journal of Official Statistics 2 (1986) 561–9.
Comment on Hodges paper, Statistical Science 2 (1987) 282-86.
“Pricing Determinants, Role in Risk Management, and Option Evaluation for Options on Stock Indexes and Stock Index Futures, in F.J. Fabozzi and G.M. Kipnis,” The Handbook of Stock Index Futures and Options Homewood, IL: Dow Jones-Irwin (1989) 158-70 (with F.J. Fabozzi and Gary Gastineau).
“A Comparison of the Likelihood Ratio, Wald, and Rao Tests,” L.J. Gleser, M.D. Perlman, S.J. Press, and A.R. Sampson, eds. Contributions to Probability and Statistics New York: Springer-Verlag (1989) 465-71.
“Bayesian Analysis with Incompletely Specified Prior Distributions,” S. Geisser, J.S. Hodges, S.J. Press, and A. Zellner, eds. Bayesian and Likelihood Methods in Statistics and Economics Amsterdam: North-Holland (1989) 423-36.
“Probability, Uncertainty, and Risk,” The International Journal of Evidence & Proof (1997) 74-8.
“We’ve Learned Inference About the Mean; What Should We Learn Next?” STATS (2000) 3-7.
"On Sampling Design Issues When Dealing With Zeros," Journal of Survey Statistics and Methodology 1 (2013) 144-70 (with Benjamin King).