Goals of Econometric Analysis

Question 1

Hypothesis testing

Answer 1

Determining whether there is adequate evidence to refute an assertion about the value of a parameter.

Question 2

Forecasting

Answer 2

Estimating the value that a dependent variable would take on under conditions that may not yet exist. Synonyms: Fitting, Predicting.

Question 3

Sensitivity analysis

Answer 3

Estimating the change in the value that a dependent variable that
would accompany a change in the value of an independent
variable. Synonym: Marginal analysis.