Scribd
Upload
100 views

Econ2280 Tutorial 1 Review Notes PDF

This document provides an introduction and review of key concepts in econometrics and economic data. It defines econometrics as the use of statistical methods to analyze economic data, which is typically non-experimental or observational data. Common types of econometric data are described as cross-sectional data, time series data, pooled cross-sectional data, and panel data. Econometric models are used for estimation, hypothesis testing, and prediction in economics. Statistical concepts such as mean, variance, covariance, correlation, conditional probability, conditional mean, and conditional variance are also reviewed.

Uploaded by

Kelvin Chan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
100 views

Econ2280 Tutorial 1 Review Notes PDF

This document provides an introduction and review of key concepts in econometrics and economic data. It defines econometrics as the use of statistical methods to analyze economic data, which is typically non-experimental or observational data. Common types of econometric data are described as cross-sectional data, time series data, pooled cross-sectional data, and panel data. Econometric models are used for estimation, hypothesis testing, and prediction in economics. Statistical concepts such as mean, variance, covariance, correlation, conditional probability, conditional mean, and conditional variance are also reviewed.

Uploaded by

Kelvin Chan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 4

Econ 2280 Introductory Econometrics

Tutorial 1 Review Notes


Nature of Econometrics and Economic Data

1 Introduction to econometrics
What is econometrics?

– Econometrics is the use of statistical methods to analyze economic


data.

What is econometric data?

– Econometric data is non-experimental data, or observational data.


– Type of econometric data?
Cross sectional data.
Time series data.
Pooled cross-sectional data.
Panel data.

What are the uses of econometric model?

– Estimation: estimate the nature and strength of relationship be-


tween variables.
– Hypothesis testing: test the existence of economic relationship
– Prediction: predict the value of economic variables, evaluate the
e¤ectiveness of policies.

1
2 Review of Statistics
2.1 Mean
Population mean:

1 XN
E (Y ) = Y = yi :
N i=1

Sample mean:
1 Xn
y= yi :
n i=1

2.2 Variance
Population variance:

2 1 XN 2
V ar (Y ) Y = (yi Y) :
N i=1

Sample variance:

1 XN
s2Y = (yi y)2 :
n 1 i=1

Useful formulae:

V ar (Y ) = E Y 2 [E (Y )]2 :

2.3 Covariance
Population covariance:

1 XN
Cov (X; Y ) XY = (xi X ) (yi Y ):
N i=1

Sample covariance:

1 Xn
Cov (X; Y ) sXY = (xi x) (yi y) :
n 1 i=1

2
Useful formulae:

Cov (X; Y ) = E (XY ) E (X) E (Y ) :

2.4 Correlation
Population correlation:

cov (X; Y )
corr (X; Y ) XY =p p :
var (X) var (Y )

Sample correlation:

sXY sXY
corr (X; Y ) rXY = q q = :
s2X s2Y sX sY

2.5 Conditional Probability


Pr (Y = y; X = x)
Pr (Y = yjX = x) = :
Pr (X = x)

2.6 Conditional Mean


Discrete random variable:

X
E (Y jX) = y Pr (yjx) :
| {z }
c o n d itio n a l

P ro b a b ility

Continuous random variable:

Z
E (Y jX) = yf (yjx) dy:
| {z }
c o n d itio n a l

P ro b a b ility

3
Useful formulae:
E (Y ) = E [E (Y jX)] :

2.7 Conditional Variance


discrete random variable:
X
V ar (Y jX) = [y E (yjx)]2 Pr (yjx) :

continuous random variable:


Z
V ar (Y jX) = [y E (yjx)]2 f (yjx) dy:

Useful formulae:

V ar (Y ) = E [V ar (Y jX)] + V ar [E (Y jX)] :

You might also like