Econometrics Exam 1 (Chapters 1,2,3) Questions and Answers Updated.

Econometrics - Answer The branch of economics that develops and uses statistical methods for estimating economic relationships Experimental Data - Answer Data that have been obtained by running a controlled experiment Nonexperimental Data - Answer Data that have not been obtained through a controlled experiment Empirical Analysis - Answer A study that uses data in a formal econometric analysis to test a theory, estimate an economic relationship, or determine the effects of a policy or intervention Correlation - Answer A measure of the association between two variables Causal Effect - Answer A ceteris paribus change in one variable that has an effect on another variable Economic Model - Answer A relationship derived from economic theory or less formal economic reasoning Parameters - Answer An unknown value that describes a population relationship Error Term - Answer The variable in a regression equation that contains unobserved factors which affect the dependent variable (disturbance) 3 Types of Data - Answer 1. Cross Sectional Data 2. Time Series Data 3. Panel Data Cross Sectional Data - Answer A data set collected by sampling a population at a given point in time Time Series Data - Answer Data collected over time on one or more variables