Econometrics - Chapter 1 and 2
Constant/intercept✔✔ indicates the vale of Y when X equals zero
Cross-sectional✔✔ all the observations are from the same point in time and represent
different individual economic entities from that same point in time
Dependent variable✔✔ variable that changes due to independent variables
Estimated regression equation✔✔ quantified version of the theoretical regression
equation
Expected value✔✔ deterministic component, indicates the value of Y that is determined
by a given value of X, which is assumed to be nonstochastic
Independent variable✔✔ variable that changes
Linear✔✔ if plotting the function in terms of X and Y generates a straight line
Multivariate regression model✔✔ more than one independent variable
Regression analysis✔✔ A statistical technique that attempts to "explain" movements in
one variable as a function of movements in a set of other variables
Residual✔✔ the difference between the estimated value of the dependent variable and the
actual value of the dependent variable
Slope coefficient✔✔ Indicates the amount that Y will change when X increases y one
unit
Stochastic error term✔✔ a term that is added to a regression equation to introduce all of
the variation in Y that cannot be explained by the included Xs
The uses of econometrics✔✔ Describe, hypothesis, forcast
Steps in econometrics analysis✔✔
