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**Unformatted text preview: **σ 2 N ) (c) Conﬁdence Interval: → [ g 1 ,g 2 ] = h ¯ Y-s √ T t α/ 2 ,T-1 , ¯ Y + s √ T t α/ 2 ,T-1 i → margin of error: s √ T t α/ 2 ,T-1 (d) Hypothesis Testing 2. Structure of Economic Data (a) Data Transformation → Δ Y t Y t-1 = Y t-Y t-1 Y t-1 → log( Y t )-log( Y t-1 ) ≈ Δ Y t Y t-1 when Δ Y t Y t-1 is small → 100 * Δ log( Y ) ≈ %Δ Y (b) Simple Linear Model → Let y = a + bx → marginal eﬀect Δ y Δ x = b (c) Log-linear 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