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Unformatted text preview: ECO2121: Methods of Economic Statistics TA7 – 4 March 2009 “ Writing down explanations for True/False or Multiple Choice questions is stupid. ” 1. The Budget 09 – 10 (a) Subsidize university fresh graduates: help them to secure a job. (b) Increase tax rate on cigarettes: reduce consumption for youngsters. How to derive theoretical implications and test those using statistical tools? “ A Story of Exam. ” 2. Estimators vs. Estimates (revisited) X has mean μ and variance σ 2 , where both μ and σ 2 are both unknown and therefore to be estimated. The corresponding estimators (which are usually random variables) are the sample mean and the sample variance (why?), their realizations are the estimates. We cannot evaluate estimates because we don ’ t know μ and σ 2 , however we can evaluate estimators in probabilistic sense, e.g. by their expectations and variances. Example: ¡¢ [ £ ¤ ] = ¥ ¦ § ⁄ , is it a random variable? ¨©ª [ « ¬ ] = ® ¯ ° ⁄ , is it a...
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- Fall '08
- Variance, Probability theory