Outline Introduction to Econometrics Foundations to Econometrics Simple Linear Regression (SLR) SLR Model Evaluation S

Introductory
Econometrics:
Learning
Introductory Econometrics: Objectives (LO)

ITH Phanny
Learning Objectives (LO)
Outline

Introduction to
Econometrics
ITH Phanny Foundations to
Econometrics

Phnom Penh International University, Simple Linear

Regression (SLR)
Phnom Penh, Camboida
SLR Model
Evaluation
August 28, 2016 SLR Assumption,
Estimation &
Email: [email protected] Prediction
To Accompany Applied Regression Modeling: Multiple Linear
A Business Approach, I. Pardoe, 2E Regression

Self-Dialogue:
Practical Tips
1 / 14
Outline Introduction to Econometrics Foundations to Econometrics Simple Linear Regression (SLR) SLR Model Evaluation S

1 Introduction to Econometrics Introductory

Econometrics:
Learning
Objectives (LO)
2 Foundations to Econometrics
ITH Phanny

3 Simple Linear Regression (SLR) Outline

Introduction to
Econometrics
4 SLR Model Evaluation
Foundations to
Econometrics

5 SLR Assumption, Estimation & Prediction Simple Linear

Regression (SLR)

SLR Model
6 Multiple Linear Regression Evaluation

SLR Assumption,
Estimation &
7 Self-Dialogue: Practical Tips Prediction

Multiple Linear
Regression

Self-Dialogue:
Practical Tips
2 / 14
Outline Introduction to Econometrics Foundations to Econometrics Simple Linear Regression (SLR) SLR Model Evaluation S

Bloom’s Taxonomy: Learning Objectives

Introductory
Econometrics:
Learning
Objectives (LO)

ITH Phanny

Outline

Introduction to
Econometrics

Foundations to
Econometrics

Simple Linear
Regression (SLR)

SLR Model
Evaluation

SLR Assumption,
Estimation &
Prediction

Multiple Linear
Regression

Self-Dialogue:
Practical Tips
3 / 14
Outline Introduction to Econometrics Foundations to Econometrics Simple Linear Regression (SLR) SLR Model Evaluation S

General Goals in this class are:

Introductory
• To offer a practical, workable introduction to regression Econometrics:
Learning
analysis for upper-level undergraduate business Objectives (LO)

students, business managers, including auditors, ITH Phanny

financial analysts, retailers, economists, production Outline

managers, and professionals in manufacturing firms. Introduction to
• To prepare students to apply statistical methods in their Econometrics

Foundations to
decision-making, using primarily regression analysis and Econometrics
modeling. Simple Linear
Regression (SLR)
• To help readers understand, analyze, and interpret
SLR Model
business data and make informed decisions in uncertain Evaluation
settings, many of the examples and problems use SLR Assumption,
Estimation &
real-life data with a business focus, such as production Prediction

costs, sales figures, and salaries. Multiple Linear

Regression
• To understand and apply the methods in the book that
Self-Dialogue:
calculus background is not required. Practical Tips
4 / 14
Outline Introduction to Econometrics Foundations to Econometrics Simple Linear Regression (SLR) SLR Model Evaluation S

Ch.01: Introduction to Econoemtrics

Introductory
Econometrics:
Learning
After studying this chapter, you should be able to: Objectives (LO)

• Define what econometrics is ITH Phanny

• Discuss why econometrics is studied Outline

Introduction to
• Define what econometrics is about Econometrics

• List 5 examples of econometric applications Foundations to

Econometrics
• Define what econometric model is Simple Linear
Regression (SLR)
• Identify three use of statistical inference for SLR Model
econometrics Evaluation

SLR Assumption,
• Identify stages of econometric research process Estimation &
Prediction
• Identify steps involved in forming econometric model Multiple Linear
Regression

Self-Dialogue:
Practical Tips
5 / 14
Outline Introduction to Econometrics Foundations to Econometrics Simple Linear Regression (SLR) SLR Model Evaluation S

Ch.02: Foundations to Econometrics

Introductory
Econometrics:
Learning
After studying this chapter, you should be able to: Objectives (LO)

ITH Phanny
• Analyze data to inform (business or economics) decision
• Identify and summarize data with examples Outline

Introduction to
• Compute sample statistics using spreadsheet Econometrics

Foundations to
• Compute the probability of normal distribution and Econometrics
percentile calculations Simple Linear
Regression (SLR)
• Evaluate the probability of the mean being greater than
SLR Model
295 Evaluation

SLR Assumption,
• Interpret the meaning of the probability of the mean Estimation &
Prediction
being greater than 295
Multiple Linear
Regression

Self-Dialogue:
Practical Tips
6 / 14
Outline Introduction to Econometrics Foundations to Econometrics Simple Linear Regression (SLR) SLR Model Evaluation S

Ch.02: Foundations to Econometrics (Con’t)

Introductory
Econometrics:
Learning
Objectives (LO)

After studying this chapter, you should be able to: ITH Phanny

• Estimate the population mean E(Y ) Outline

• Calculate the confidence interval for E(Y ) Introduction to

Econometrics
• Interpret confidence interval Foundations to
Econometrics
• Define hypothesis testing
Simple Linear
Regression (SLR)
• Identify steps of hypothesis testing and rejection region
SLR Model
• Identify three types of hypothesis testing with examples Evaluation

SLR Assumption,
• Evaluate prediction intervals Estimation &
Prediction

Multiple Linear
Regression

Self-Dialogue:
Practical Tips
7 / 14
Outline Introduction to Econometrics Foundations to Econometrics Simple Linear Regression (SLR) SLR Model Evaluation S

Ch.03: Simple Linear Regression (SLR)

Introductory
Econometrics:
After studying this chapter, you should be able to: Learning
Objectives (LO)
• Identify and define dependent and independent variable
ITH Phanny
• Distinguish between a deterministic relationship and a
Outline
statistical relationship
Introduction to
• Understand the concept of the least squares criterion Econometrics

Foundations to
• Interpret the intercept b0 and slope b1 of an estimated Econometrics

regression equation Simple Linear

Regression (SLR)
• Know how to obtain the estimates b0 and b1 from SLR Model
statistical software and regression analysis output Evaluation

SLR Assumption,
• Recognize the distinction between a population Estimation &
Prediction
regression line and the estimated regression line
Multiple Linear
Regression
• Summarize the four conditions that comprise the SLR
Self-Dialogue:
Practical Tips
8 / 14
Outline Introduction to Econometrics Foundations to Econometrics Simple Linear Regression (SLR) SLR Model Evaluation S

Ch.04: SLR Model Evaluation

Introductory
Econometrics:
After studying this chapter, you should be able to: Learning
Objectives (LO)
• Recognize three evaluation methods of fit numerically ITH Phanny

• Identify regression standard error from computer output

Outline
• Interpret the regression standard error Introduction to
Econometrics
• Calculate coefficient of determination R2 Foundations to
• Interpret coefficient of determination R 2 Econometrics

Simple Linear
• Calculate the correlation r Regression (SLR)

SLR Model
• Identify estimated slope parameter from computer Evaluation

output SLR Assumption,

Estimation &
• Test hypothesis for slope parameter b1 Prediction

Multiple Linear
• Compute slope b1 confidence interval Regression

Self-Dialogue:
Practical Tips
9 / 14
Outline Introduction to Econometrics Foundations to Econometrics Simple Linear Regression (SLR) SLR Model Evaluation S

Ch.05: SLR Assumption, Estimation &

Prediction Introductory
Econometrics:
Learning
Objectives (LO)

After studying this chapter, you should be able to: ITH Phanny

• Recognize regression model assumptions Outline

• Check model assumptions by plotting Introduction to

Econometrics
• Interpret the model result Foundations to
Econometrics
• Differentiate between confidence and prediction
Simple Linear
intervals for simple linear regression Regression (SLR)

SLR Model
• Calculate confidence intervalfor population mean E(Y ) Evaluation
and prediction interval of an individual Y-value SLR Assumption,
Estimation &
• Compare confidence interval with prediction interval Prediction

Multiple Linear
• Summarize steps in simple a linear regression analysis Regression

Self-Dialogue:
Practical Tips
10 / 14
Outline Introduction to Econometrics Foundations to Econometrics Simple Linear Regression (SLR) SLR Model Evaluation S

Ch.06: Multiple Linear Regression

Introductory
Econometrics:
After studying this chapter, you should be able to: Learning
Objectives (LO)
• Identify and define dependent and independent variable
ITH Phanny
• State the concept of the least squares criterion
Outline
• Identify the estimates b0 , b1 and b2 from statistical
Introduction to
software Econometrics

Foundations to
• Interpret the b0 , b1 and b2 of an estimated regression Econometrics
equation Simple Linear
Regression (SLR)
• Evaluate three methods of fit numberically SLR Model
Evaluation
• Identify and state regression standard error from
SLR Assumption,
statistical software Estimation &
Prediction
• Calculate and interpret R 2 Multiple Linear
Regression
• Calculate and compare adjusted R 2 between two models
Self-Dialogue:
Practical Tips
11 / 14
Outline Introduction to Econometrics Foundations to Econometrics Simple Linear Regression (SLR) SLR Model Evaluation S

Ch.06: Multiple Linear Regression (Con’t)

Introductory
After studying this chapter, you should be able to: Econometrics:
Learning
Objectives (LO)
• Calculate the multiple correlation coefficient
ITH Phanny
• Calculate global F-test
Outline
• Decide whether to reject or not reject the null
Introduction to
• Compare reduced and complete models Econometrics

Foundations to
• Identify hypothesis for bp Econometrics

• Identify individual t-test from statistical software Simple Linear

Regression (SLR)
• Interpret the model result SLR Model
Evaluation
• Differentiate between confidence and prediction SLR Assumption,
intervals Estimation &
Prediction
• Calculate confidence interval for population mean, E(Y ) Multiple Linear
Regression
• Compare confidence interval with prediction interval Self-Dialogue:
Practical Tips
12 / 14
Outline Introduction to Econometrics Foundations to Econometrics Simple Linear Regression (SLR) SLR Model Evaluation S

Self-Dialogue: Practical Tips

Introductory
Self-Dialogue is designed to help you become more engaged Econometrics:
Learning
in your learning process. As you go through this course, keep Objectives (LO)
a journal of your thoughts and feelings about your learning ITH Phanny
by prompting your Responses to the following Questions:
Outline

Introduction to
• (1) What are you learning this section of the course? Econometrics

• (2) How are you learning? Are you learning by reading Foundations to
Econometrics
the textbook, listening to the instructor’s lectures, Simple Linear
writing paper, doing projects, or by other methods? Regression (SLR)

• (3) Is this new knowledge you are learning? If so, what SLR Model
Evaluation
is new? If not, what did you already know? SLR Assumption,
• (4) How does the learning in this course fit into your Estimation &
Prediction
life? How does it help you with your life goals—both Multiple Linear
Regression
personally and professionally?
Self-Dialogue:
Practical Tips
Sources: The McGraw-Hill Companies, Inc. 13 / 14
Outline Introduction to Econometrics Foundations to Econometrics Simple Linear Regression (SLR) SLR Model Evaluation S

Self-Dialogue: Practical Tips (Con’t)

Introductory
Self-Dialogue is designed to help you become more engaged Econometrics:
Learning
in your learning process. As you go through this course, keep Objectives (LO)
a journal of your thoughts and feelings about your learning ITH Phanny
by prompting your Responses to the following Questions:
Outline

Introduction to
• (5) How does the learning in this course make you feel Econometrics

about yourself? Foundations to

Econometrics
• (6) How will you use the learning in the course of your
Simple Linear
life—both personally and professionally? Regression (SLR)

• (7) How has the learning in this course broadened your SLR Model
Evaluation
view or changed your life? SLR Assumption,
• (8) What experience in your life can relate you to the Estimation &
Prediction
materials in this course? Multiple Linear
Regression

Self-Dialogue:
Sources: The McGraw-Hill Companies, Inc. Practical Tips
14 / 14