Lecture Note #6
Fall 2012, Hyeon Kim
Lecture Note #6 Introduction to Inference (Chapter 6)
Methods for drawing conclusions about a population from sample data are called statistical
Economics 4650 Section 1
581-4577 (581-4577 office message)
Course Support on Canvas
This class has the potential for being one of the most rewarding classes you can take as an undergradua
Econ 4650 R Fowles
Lets learn to use R a bit to enter data and do some basic analysis. If we have a very short
amount of data to enter, we could do it this way:
> mydat <- c(1, 3, 5, 0, 2)
Note that nothing happens (if we are lucky)
1.) Hypothesize the expected sign for each of the K coefficients in your model
The model I will be using for the Boston Housing regression analysis is a linear OLS model of the
MEDVi = +1X1,I + 2X2,I
Econometrics Assignment 1
January 9, 2013
For your rst exercise I want you to download a simple data le in a
comma delimited format. It is available on Canvas.
The le can be opened in Excel (or R) and contains 30 individual observations. Ma
Constrained Optimization Survival Guide
Maximize utility, minimize costs, maximize prots, maximize welfare, minimize the loss
functionthese are all typical economics problems. Indeed, Lionel Robbins dened economics as the study of the allocation of scarce
1. What is the MRS of a consumer with the utility function U(x,y) = 2xy ?!
2. Karl has a utility function of U(x,y) = 2x + y, and income of M = 10 and he faces prices Px = Py =1.
Find his optimal consumption bundle via any method you like.
3. Anna consume
Runs batted in
Earned run average 2.28
Statistical techniques are employed in almost every phase of life.
Surveys are designed
In a study, we collect informationdatafrom individuals. Individuals
can be people, animals, plants, or any object of interest.
A variable is any characteristic of an individual. A variable varies
November 20, 2007
Table entry for z is the
area under the
standard normal curve
to the left of z.
TABLE A Standard normal probabilities
1. Inferences for a single proportion
Many studies collect data on categorical variables, such as race or
occupation of a person, the make of a car, etc.
The parameters of interest in these settings are population
Cola manufacturers want to test how much the sweetness of a
new cola drink is affected by storage. The sweetness loss due
to storage was evaluated by 10 professional tasters (by
comparing the sweetness befor
Overview of Inference
Methods for drawing conclusions about a population from sample
data are called statistical inference.
Confidence Intervals - estimating a value of a population
Tests of significance -
1. General Probability Rules
Reminder of general rules for probability (from Chapter 4)
Two requirements for a legitimate assignment of probabilities
0 ( A)
P ( S ) = 1; S=sample space
Complement rule: P ( Ac ) = ( A)
- A phenomenon is random if individual outcomes are uncertain,
but there is nonetheless a regular distribution of outcomes in a large
number of repetitions.
- The probability of any ou
Observation and Experiment
Observational study: Record data on individuals without
attempting to influence the responses.
Example: Watch the behavior of consumers looking at store
displays, or the interaction between managers and employ
Most statistical studies involve more than one variable in which we are
usually interested in the relationships between those variables.
Specifically, were wondering if some of the variables explain or even
Compare and contrast the mainstream/neoclassical microeconomics theory we
cover in class throughout the semester with the real world micro (the
supplementary textbook should help). Figure out and talk about the similarities
and differences between the "ma
ECON 3620: Mathematics for Economics
Instructor: Iris Buder
Email: [email protected] or through Canvas
Phone Number: 251-654-1370
Meeting Time: Thursday 6:00-9:00 pm in OSH 238
Spring Semester 2013
Office Hours: By Appointment
Prerequisites: College Al
Homework Assignment One
1. Solve for the value of x:
(1/6)x + (1/3)x = 20
(1/7)x (1/5)x = 15
(1/8)x (1/16)x = 10
Solve for the value of x and y:
5x + 2y = 3
-x + 1 4y = 4
2x - 2y = 8
-2x 4y = 4
Solve the following for the value