Statistics for Economists

Data is required to quantify economic relationships and statistical models are used to draw information from data which is characterized by uncertainty and variation. This course covers methods used to analyse such data and include the calculation of probability, model estimation and hypothesis testing. The topic also includes the use of statistical tools.

Knowledge

You learn

• probability theory, variation, and uncertainty
• descriptive statistics, central tendency, and distribution
• Discrete stochastic variables and continuous stochastic variables
• common probability distributions, as the normal distribution and the binominal distribution
• Estimation: Point estimation, interval estimation, evaluation of sample size
• Formulating hypotheses and testing whether a hypothesis is rejected. Hypothesis testing using normal approximation, p-values, variance
• what a statistical model is, how statistical conclusion can be made, and how the uncertainty in such conclusions can be characterized

Skills

You should be able to:

• formulate a probability model based on a verbally unstructured question
• recognize which, among the most common probability distributions, that is applicable in a given situation
• Conduct hypothesis testing and apply appropriate hypothesis testing
• Estimate and find confidence intervals for unknown parameters
• Relate the applications of statistical methods to issues related to the field of economics
• Critically evaluate results from statistical analysis
• Use statistics to express, analyse, and communicate economic relationships
• Have a generally good understanding of statistics as a basis for further studies
• Use of data tools

2 hours of lectures every week. Information about tutorials and compulsory activity will be announced at the beginning of the term.