The final exam will be comprehensive. You should review the material we covered for exam 1 and exam 2. You will need a calculator for this exam
I. Hypothesis Testing across populations
A. Difference of means
B. Difference of proportions
C. Mean of differences
II. Regression
A. Dependent (y) and independent (x) variables
1. Y = a + bX
2. multiple regression
B. Ordinary Least Squares
1. best, linear, unbiased estimate
2. computer estimation
C. Variations on OLS
1. dummy variables
2. transforming non-linear relations to use OLS
a. quadratic terms
b. natural logs
C. Coefficient estimates
D. Hypothesis testing
1. standard error of the coefficient
2. "t-statistics"
E. R-squared
III. Regression Problems
A. Correlation is not causality
B. Data collection must be methodologically sound
1. random sample, representative of population
2. avoid bias in survey questions
3. control groups in experiments
C. Statistical Issues
1. autocorrelation
2. heteroskedasticity
3. multicollinearity
IV. Forecasting
A. Use estimated coefficients to forecast Y, given new X variables
B. Conditional forecasts
C. Systems of Equations
D. trends and time series
V. Time series
A. Trends
1. growth over time
2. Y = a + bT
3. non-linear
B. Fluctuation
1. seasonal
2. cyclical
3. random
4. moving average
D. Lagged values of Y
1. random walk
2. autoregressive process
E. ARIMA
Department of Economics (information from the Registrar's office)