Notes - Week 1 - Econ. 471 Today, we will talk about the...

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
Econ. 471 Today, we will talk about the simple regression model
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Types of Data – Cross Sectional Cross-sectional data is a random sample Each observation is a new individual, firm, etc. with information at a point in time If the data is not a random sample, we have a sample-selection problem
Background image of page 2
Types of Data – Time Series Time series data has a separate observation for each time period – e.g. stock prices Since not a random sample, different problems to consider We’ll consider time series data later in this course.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
The Simple Regression Model y = β 0 + 1 x + u In the simple linear regression model, where y = 0 + 1 x + u , we typically refer to y as the Dependent Variable, or Left-Hand Side Variable, or Explained Variable, or Regressand
Background image of page 4
Some Terminology, cont In the simple linear regression of y on x, we typically refer to x as the Independent Variable, or Right-Hand Side Variable, or Explanatory Variable, or Regressor, or Covariate, or Control Variables
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
We need some assumptions to identify β 0’ 1 The average value of u , the error term, in the population is 0.
Background image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/15/2008 for the course ECON 471 taught by Professor Oliveira-lima during the Spring '08 term at University of Illinois at Urbana–Champaign.

Page1 / 20

Notes - Week 1 - Econ. 471 Today, we will talk about the...

This preview shows document pages 1 - 7. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online