ECON-UA 1 Lecture Notes - Lecture 5: Gross Domestic Product, Standard Score, Standard Deviation
23 Sep 2015
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Document Summary
Econ ua 1 - lecture 5 - gdp. Gdp - the value of all final goods and services produced for the marketplace during a given time period within domestic borders. Measure of total production in an economy - often misused but a very good measure. Services: things produced by lawyer, doctor, etc. Produced: lot of transaction that take place don"t count because nothing was produced. Trimming - cutting out top/bottom 2% of data. Non-linear transformation data that needs to be reexpressed. Z score with probability shows how frequent such score is. Shape of z score distribution = standard deviation of z score = 1. Z score distribution is a linear transformation. Everything in gdp is purchased by households except purchase of new house. Includes imputed values of food consumed by farmers and imputed values of housing services for homeowners. Everything in gdp purchased by government sector. Everything in gdp purchased by foreign sector.
