Lecture_2_Prof_Arkonac's_slides_(Ch_2)

# Lecture_2_Prof_Arkonac's_slides_(Ch_2) - Introduction to...

This preview shows pages 1–12. Sign up to view the full content.

Introduction to Econometrics W3412, Fall 2010 Lecture 2 Prof: Seyhan Arkonac, PhD

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

View Full Document
Stata sessions: Thursday 9/23, 11-11:50am, SCH 558 (Naihobe) Thursday 9/23, 12-12:50pm, SCH 558 (Ran) Thursday 9/23, 4:10-6pm, SCH 558 (WooRam) Friday 9/24, 2:10-3pm, SCH 558 (Ju Hyun) Every week starting 9/24 11-1150am SCH 558 (Shreya)
What is a Random Variable? Gender of the next newborn baby Number of times your computer will crash while you are writing a term paper Number of times your wallet is stolen during four years of college Age of next 10 th customer at a store Gender of the next 20 th caller Eye color of the next Lottery winner

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

View Full Document
A Random Variable is a numerical summary of a random outcome Let M be the number of times your computer will crash while writing a paper Then M may take values from 0 to say 4 (This is an example to a Discrete random Variable) why? What is an example of a continuous RV?
Continuous Random Variable examples: Height of people Weight of people Amount of money people earn Continuous RV takes on a continuum of possible values (once measured and recorded it will become discrete)

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

View Full Document
Probability Distribution of a discrete RV is the list of all possible values of the variable and the probability that the each value will occur Cumulative Probability distribution: is the probability that the RV is ≤ a particular value See the following computer crash example:
2-7

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

View Full Document
2-8
Probability Distribution of a continuous RV is not suitable for continuous RV, instead the probability is summarized by probability density function (pdf) Cumulative Probability distribution: is the probability that the RV is ≤ a particular value (same as in discrete RV case) See the following commuting times example:

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

View Full Document
2-10
Now let’s go back to the relationship between class size and educational output : Empirical problem: Class size and educational output Policy question: What is the effect on test scores (or some other outcome measure) of reducing class size by one student per class?

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

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern