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ECON222 WEEK1 Exp-1

ECON222 WEEK1 Exp-1 - Lecture 1 Topic Introduction Reading...

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1 1 Lecture 1: Topic: Introduction Reading H&P, Ch 4; 1.1 (For introductory material, see Ch 0, pp. 10-16.) Reading for this lecture H&P, Ch 4, Sect 4.1; Ch 1.1 (modeling). Homework for Tutorial in Week 2 Ex 4.1, p. 173, problems 1, 5, 15. 2 Function A function describes the relationship between two or more variables. Eg: y = f(x) 3 Variable Something whose magnitude can change. Y = a + bX Y = endogenous / dependent variable X = exogenous/ independent variable 4 Types of Functions - Constant Function A function whose range consists only of one element. Eg: Y = a - Linear Functions Eg: Y = a + bX 5 Types of Functions - A polynomial function Y = a +bX + cX 2 + dX 3 + ….+ eX n A function involving a variable raised to some power. - Quadratic Function – is a polynomial to the degree two. Y = a +bX + cX 2 6 Types of Functions - Exponential Functions: The exponent is a variable. Eg : Y = b x - Logarithmic Functions: Eg: Y = log b X
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