Part II

Building the Classical Linear Regression Model

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pt_webextra_bw.TIF Cramming for an exam? Visit www.dummies.com/extras/econometrics for an at-a-glance guide to defining a regression model.

In this part . . .

check  Recognize how econometric techniques help you make estimates about economic relationships by relating economic ­theory to econometric models.

check  Grasp the fundamental ideas behind the most common technique used to quantify economic relationships: the ordinary least squares (OLS) technique, also known as regression analysis.

check  Estimate simple regression models by hand and on the computer and interpret the results of regression analysis with the help of econometric software.

check  Get acquainted with the assumptions of the classical linear regression model (CLRM) that define a “standard situation” in econometrics and understand their role in proving the Gauss-Markov theorem.

  Find out precisely how ...

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