321_09_slides4

# 321_09_slides4 - Week 2 Review Econ 321 Introduction to...

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

Week 2 Review Econ 321 Introduction to Econometrics Econ 321-Stéphanie Lluis 1

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

View Full Document
Outline Review of steps in statistical analysis: CLT Hypothesis testing Confidence Intervals Covariance/Correlation Simple regression Econ 321-Stéphanie Lluis 2
Confidence Intervals We want to know how likely it is that the population parameter lies within a “reasonable” interval of the value of our estimated parameter (based on sample info) A 95% confidence interval for the mean for a population which follows a N( ,1) is such that: Where Y 1 , . ..Y N is a random sample and is the sample mean. 1.96 is the 97.5 th in the N(0,1) distribution

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

View Full Document
Econ 321-Stéphanie Lluis 4
Based on Previous Example Construct a confidence interval for the change in scrap rate from 1987 to 1988 With n=20, a 95% conf. int. for the mean change in scrap rates is: [y ± 2.093*se(y)] 2.093 is the 97.5 th percentile in a t 19 distribution [-2.28, -0.02] Since the value 0 is not in the interval, with 95% confidence the average change in scrap rate is not 0

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

View Full Document
Further Analysis: Moving on to Multidimensional analysis Layoff from a corporation in which 35% of the employees are age 40 or older. Of the 100 employees who are laid off, 45% are age 40 or older. a hypothesis test indicates that this is unlikely to have occurred by
This is the end of the preview. Sign up to access the rest of the document.

## This note was uploaded on 07/11/2011 for the course ECON 321 taught by Professor Louis during the Fall '09 term at Waterloo.

### Page1 / 29

321_09_slides4 - Week 2 Review Econ 321 Introduction to...

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

View Full Document
Ask a homework question - tutors are online