Econometrics 1

This subject provides an introduction to econometrics, which involves using data and statistical methods to estimate economic relationships, test economic theory, and predict the impact of policy. Topics covered include probability and statistics, single linear regression, multiple linear regression, non-linear regression, model internal and external validity, field and natural experiments, and time series models. Econometric methodology and application will be motivated and illustrated through applications to economics, accounting, finance, marketing, and management.

• 1Apply least-squares method of estimation and inference to the context of single and multiple linear regression;
• 2Use statistical program to estimate econometric models, test hypotheses, and undertake forecasting exercises.; and
• 3Understand and explain various problems that arise in the development and interpretation of econometric models including multicollinearity, specification error, heteroskedasticity, autocorrelation, internal validity and external validity.