Introduction to Econometrics [Paperback]

Now in its fourth edition, this landmark text provides a fresh, accessible and well-written introduction to the subject. With a rigorous pedagogical framework, which sets it apart from comparable texts, the latest edition features an expanded website providing numerous real life data sets and examples.Foreword xvii

Preface to the Fourth Edition xix

Part I Introduction and the Linear Regression Model 1

CHAPTER 1 What is Econometrics? 3

1.1 What is econometrics? 3

1.2 Economic and econometric models 4

1.3 The aims and methodology of econometrics 6

1.4 What constitutes a test of an economic theory? 8

CHAPTER 2 Statistical Background and Matrix Algebra 11

2.1 Introduction 11

2.2 Probability 12

2.3 Random variables and probability distributions 17

2.4 The normal probability distribution and related distributions 18

2.5 Classical statistical inference 21

2.6 Properties of estimators 22

2.7 Sampling distributions for samples from a normal population 26

2.8 Interval estimation 26

2.9 Testing of hypotheses 28

2.10 Relationship between confidence interval procedures and tests of hypotheses 31

2.11 Combining independent tests 32

CHAPTER 3 Simple Regression 59

3.1 Introduction 59

3.2 Specification of the relationships 61

3.3 The method of moments 65

3.4 The method of least squares 68

3.5 Statistical inference in the linear regression model 76

3.6 Analysis of variance for the simple regression model 83

3.7 Prel3U