Class Notes (834,526)
Canada (508,575)
York University (35,156)
Economics (1,721)
ECON 2500 (94)
Lecture 6

ECON 2500 Lecture 6: Chapter 16 Bootstrap Methods and Permutation Tests Lecture 6

2 Pages
Unlock Document

ECON 2500
Andrei Semenov

Chapter 16 Bootstrap Methods and Permutation Tests Lecture 6 • • Spread: The bootstrap standard error of a statistic is the standard deviation of its boots trap distribution. • The boots trap standard foretime test he standard deviation of the sampling distribution of the statistic. • Bootstrap t confidence intervals If the boots trap distribution of astatistics how sa Normal shape and small bias, we can get a confidence interval for the parameter by using the bootstrap standard rora nd the familiar distribution. An example will show how this works. EXAMPLE • Selling prices of residential real estate. We are interested in the selling prices of residential real estate in Seattle, Washington. • Table 16.1 displays the selling prices of a random sample of 50 pieces of real estate sold in Seattle during 2002, as recorded by the county assessor.6 Unfortunately, the data do not distinguish residential property from commercial property. • Most sales are residential, but a few large commercial sales in a sample can greatly increase the sample mean selling price. Figure16.6 shows the distribution of the sample prices. • The distribution is far from Normal, with a few high outliers that may be commercial sales. The sample is small, and the distribution is highly skewed and “contaminated” by an unknown number of commercial sales. • How can we estimate the center of the distribution despite these difficulties? • The first step is to abandon the mean as a measure of center in favor of a statistic that is more resistant to outliers. • We might choose the median, but in this case we will use the 25% trimmed mean, the mean of them idle 50% of the trimmed mean, page 53 observations. The median is the middle or mean of the 2 middle observations. • The trimmed mean of tendoes a better job of representing the average of typical observations
More Less

Related notes for ECON 2500

Log In


Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.