lect1_103_2010

lect1_103_2010 - 3/29/2010 Introduction - I Econometrics...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
3/29/2010 1 Introduction - I • Econometrics – Use of statistical tools to analyze economic related data. • Econ 41 – primarily covers statistical analysis of a single variable • Econ 103 – analysis of relationships between two (or more) variables. • Main tool in Econ 103: Regression analysis Introduction - II Regression analysis is used to determine the effect of one variable (e.g. X ) on another variable (e.g. Y ). Graphical illustration. • It is definitely the statistical procedure of choice in formal economic research. • However, it is also used quite often in the real world, as a tool to use data to inform better decisions. • Many, many examples of this….
Background image of page 1

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

View Full DocumentRight Arrow Icon
3/29/2010 2 Introduction - III – Entrepreneur trying to learn the effect of price on demand for his/her product. – Marketer assessing the impact of product design decisions on sales. – Lender measuring the effect of credit scores on loan default. – Investment banker trying to learn how economic variables affect a particular industry’s profitability. – Education administrator learning how class size affects student achievement. – Lawyer establish some cause and effect using data. – Manager trying to assess relative productivity of his/her workers. – Stock broker learning how stocks covary for hedging purposes. – Development office determining the best design of donation solicitations. – Peace Corps workers trying to learn how to best distribute contraceptives or drugs Introduction - IV • Regression analysis is an extremely powerful tool that allows one to use data to answer questions like this and help you make important decisions. • Of course, it is not the only tool to make decisions, but it is one valuable input.
Background image of page 2
3/29/2010 3 Introduction - V • Regression analysis is “hard” in one sense (lots of mathematical theory involved), “easy” in another (input data press a button in STATA ). • Most of this course will involve focusing on the theory. Why? Introduction - VI • While very powerful, regression analysis has many caveats. • For example, it is easy to misinterpret results. • To learn how to avoid this and make good
Background image of page 3

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

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 06/17/2010 for the course ECON 103 taught by Professor Sandrablack during the Spring '07 term at UCLA.

Page1 / 13

lect1_103_2010 - 3/29/2010 Introduction - I Econometrics...

This preview shows document pages 1 - 4. Sign up to view the full document.

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