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Unformatted text preview: Introduction to Statistics, Probability, and Econometrics: Lecture I Charles B. Moss May 4, 2010 I. The basic question to be answered on the first day is: What are we going to study over the next fifteen weeks and how does it fit into my graduate studies in Food and Resource Economics? A. The simplest (and most accurate) answer to the first question is that we are going to develop statistical reasoning using mathe- matical reasoning and techniques. B. The answer to the second part of the question requires is a little more complicated. 1. Following Kmenta, statistical applications can be divided into two sub-groups: descriptive statistics and statistical inference. a) Kmentas claim is that most statistical applications in eco- nomics involve the application of techniques for statistical inference. b) However, this position ignores the concept of decision making under risk. c) From a general statistical perspective, mathematical statis- tics allows for the formalization of statistical inference. How do we formulate a test for quality (light bulb life)? How do we develop a test for the significance of an income effect in a demand equation? 2. Related to the general problem of statistical inference is the study of Econometrics....
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- Spring '10
- Normal Distribution, Probability distribution, Probability theory, probability density function, Professor Charles B. Moss