11Lecture 1: Topic: IntroductionReadingH&P, Ch 4; 1.1(For introductory material, see Ch 0, pp. 10-16.)Reading for this lectureH&P, Ch 4, Sect 4.1; Ch 1.1 (modeling).Homework for Tutorial in Week 2Ex 4.1, p. 173, problems 1, 5, 15.2FunctionA function describes the relationship between two or more variables. Eg:y = f(x)3VariableSomething whose magnitude can change.Y = a + bXY = endogenous / dependent variableX = exogenous/ independent variable4Types of Functions-Constant FunctionA function whose range consists only of one element.Eg: Y = a-Linear FunctionsEg: Y = a + bX5Types of Functions-A polynomial functionY = a +bX + cX2+ dX3+ ….+ eXnA function involving a variable raised to some power.-Quadratic Function – is a polynomial to the degree two.Y = a +bX + cX26Types of Functions-Exponential Functions: The exponent is a variable.Eg : Y = bx-Logarithmic Functions:Eg: Y = logbX
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