ACTG 2P31 Lecture Notes - Lecture 3: Linear Regression, Simple Linear Regression, Econometrics
17 Nov 2017
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Econ 2p91: chapter 1-3 notes: quantitative questions with qualitative answers, for ex. A: a reduction of 2% in the quantity demanded. To arrive at this quantitative answer, econometrics is used: need a numerical answer and a measure of how precise the answer is, some questions need experiment, for ex. How much fertilizer is needed to increase the production level on vineyards: there"s a ra(cid:374)do(cid:373)ized e(cid:454)peri(cid:373)e(cid:374)t perfor(cid:373)ed. Raising price on quantity, changing laws of drunk driving on traffic accidents. Answers to econometric questions: quantitative answers using observational data. Include variables, simultaneous causality: (cid:862)correlatio(cid:374) (cid:374)ot (cid:374)ecessaril(cid:455) i(cid:373)pl(cid:455) causality(cid:863, ex. A: need omitted variables such as inherited abilities and simultaneous causalit(cid:455) (cid:862)what causes what? (cid:863) Experimental data vs. observational data: usually we would like to perform experiments but almost always we must use observational data. Types of econometric data sets: cross selectional data: relate to a single point in time, ex.
