econometics lecture 1

Question 1

B0 =

Answer 1

The Intercept or the Constant

Question 2

B1 =

Answer 2

= The Parameter Associated with X or the Slope Parameter

Question 3

x =

Answer 3

= The Independent (Explanatory) Variable or Regressor

Question 4

u =

Answer 4

error term

Question 5

Y =

Answer 5

dependent variable or regressed

Question 6

what is the simple linear regression model?

Answer 6

econometric model in
which econometricians are interested in examining the effect of one
variable on another. This model can be written as:
𝒀 = 𝜷𝟎 + 𝜷𝟏𝑿 + u

Question 7

multiple linear regression?

Answer 7

econometric model in which econometricians are interested in
examining the effect of more than one variable on a variable. This model
can be written as:
𝒀 = 𝜷𝟎 + 𝜷𝟏𝑿𝟏 + 𝜷𝟐𝑿𝟐 + ⋯ + 𝜷𝒌𝑿𝒌 + 𝒖

Question 8

cross sectional data

Answer 8

consists of a sample of individuals, firms,
cities, countries, etc. taken at a given point in time from a population.

Question 9

time series data

Answer 9

ta which consists of observations on a variable or
several variable over time.

Question 10

panel data

Answer 10

consists of a time series for each cross-sectional
member in the data set.