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ECONOMETRICS?
COURSE 1 ECONOMETRICS
econometrics means
“economic measurement.”
Although measurement is an
important part of econometrics, the
scope of econometrics is much
broader
Econometrics, the result of a certain outlook
on the role of economics, consists of the
application of mathematical statistics to
economic data to lend empirical support to the
models constructed by mathematical
economics and to obtain numerical results
traditional econometric
methodology proceeds along the
following steps:
1. Statement of theory or hypothesis.
2. Specification of the mathematical
model of the theory
3. Specification of the statistical, or
econometric, model
4. Obtaining the data
WHAT IS THE METHODOLOGY?
traditional
econometric methodology
proceeds along the following steps:
60% exam
20% project
10% test
10% activity
RECAP FROM STATS COURSE
SAMPLE POPULATION
AVERAGE: n N
x i x i
X i 1
i 1
n N
VARIANCE
x
n N
i
2
i X x 2
s
2 i 1
2 i 1
n 1
N
STANDARD
s s2 2
DEVIATION
s
COEFFICIENT cv CV
X
OF VARIATION
See you next week!