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Unformatted text preview: σ 2 N ) (c) Conﬁdence Interval: → [ g 1 ,g 2 ] = h ¯ Ys √ T t α/ 2 ,T1 , ¯ Y + s √ T t α/ 2 ,T1 i → margin of error: s √ T t α/ 2 ,T1 (d) Hypothesis Testing 2. Structure of Economic Data (a) Data Transformation → Δ Y t Y t1 = Y tY t1 Y t1 → log( Y t )log( Y t1 ) ≈ Δ Y t Y t1 when Δ Y t Y t1 is small → 100 * Δ log( Y ) ≈ %Δ Y (b) Simple Linear Model → Let y = a + bx → marginal eﬀect Δ y Δ x = b (c) Loglinear model ± ln( y ) = a + b ln( x ) ± elasticity is b = Δln( y ) Δln( x ) = Δ y y / Δ x x...
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 Spring '16
 Jeff Mills
 Economics, Econometrics, Normal Distribution, simple linear model, Olivier Parent, √s tα/2,T

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