Introduction to econometrics II eco 356 faculty of social sciences course guide course Developers: Dr. Adesina-Uthman



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Introduction to Econometrics ECO 356 Course Guide and Course Material
INTRODUCTION TO ECONOMETRICS II

ECO 306

NOUN
40

MODULE 2: SIMPLE EQUATION REGRESSION MODELS
The general aim of this module is to provide studentswith a thorough understanding of the basic rudiments of simple equation regression models. It shows how a theoretical linear relationship between two variables can be quantified using appropriate data. The principle of least squares regression analysis is explained, and expressions for the coefficients are derived. By the end of this module,students should be able to understand the basic parts of regression analysis. The units to be studied are
Unit 1: Simple Regression Analyses
Unit 2: Properties of the regression coefficients and hypothesis testing
Unit 3: Multiple regression analysis and Multicollinearity
Unit 4: Transformations of Variables

Unit 5: Dummy Variables
Unit 6: Specification of regression variables A preliminary skirmish.

UNIT 1: SIMPLE REGRESSION ANALYSES
CONTENTS
2.1.1.0 Introduction
2.1.2.0 Objectives
2.1.3.0 Main Content
2.1.3.1 Simple Regression Analyses
2.1.3.2 Causes of the Existence of the Disturbance Term
2.1.3.3 Least Squares Regression
2.1.3.3.1 Least Squares Regression with One Explanatory Variable
2.1.3.3.2 Alternative Expressions for b
2


INTRODUCTION TO ECONOMETRICS II

ECO 306

NOUN
41 2.1.4.0 Summary
2.1.5.0 Conclusion
2.1.6.0 Tutor-Marked Assignment
2.1.7.0 References/Further Reading


2.1.1.0 INTRODUCTION
In this unit, an analytic method to measure the association of one or more independent variables with a dependent variable is discussed. Simple regression analyses is a statistical method which can be used to summarize and study relationships existing between two continuous quantitative variables. This unit further introduces the simple regression as a concept that is better understood after a thorough understanding of the basic correlation procedures.

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