What is expected value? Expected value is an ‘average’ value but a special type of average value. The expected value of a random variable is its’ long-term average. Suppose, we take a large number of experiments of a random variable, and each time we put numeric values to each possible outcome in those experiments. Let’s …
R Square: Interpretation, Usage and Varieties R Square or coefficient of determination is a measure of goodness of fit of the fitted regression line to a set of considered data. It’s correct interpretation, usage and varieties of are the leverage and privilege of great economists. In the case of simple regression we use the term …
How to write literature review for thesis? What is Literature Review? Literature review for thesis or dissertation is the part with extensive reference to related research in your field. It is where you establish connection between the source texts, position yourself among these sources, and update the readers with the fill in. The purpose of …
Hi there, This article is updated in 2022 with more online resources added at the end of this article. FREE 1. Econometrics Academy One-stop solution for Econometrics for a beginner. Here, one can find Econometrics Software such as STATA, R, Eviews along with information on Econometrics Models such as Panel Data Models, Probit and Logit …
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3 Ways to Interpret Regression Estimates Suppose we got the data on exercise habits measured in minutes, and age at death measured in years. In this Learn through Econometrics Model, you ran the regression of death at age on exercise and got the result: age at death = 60 + 0.1 exercise Let’s have a …
1. Multicollinearity Multi-collinearity is a type of disturbance in data, where the independent variables are related to each other making the statistical inference redundant. 2. Heteroscedasticity Heteroscedasticity or Heteroskedasticity occurs when the size of the error term varies across the values of the independent variable. 3. Auto correlation It measures the relationship between a variables’ …
Image Credit – Pxhere.com Learning Econometrics involves the following steps. Whatever the book you use for studying Econometrics, you will eventually learn the steps to master this subject goes as below: 1. Study the Problem: You come across a problem, indulge in deep thoughts about its variables, causes etc. and make note of it. 2. …
Everyone is aware of the importance of a strong, stable foundation for high rise building. Basic mathematical tools are such skills which will help you interpret the results,and your concepts. We enlist the 4 such basic mathematical tools for your strong foundation for Econometrics. 1. Proportion and Percentage 2. Summation Operators 3. Descriptive Statistics 4. …
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