Uses of econometri - Study guides, Class notes & Summaries

Econometrics Chapter 1 EXAM QUESTIONS AND ANSWERS 100% CORRECT! Last document update:   ago

Regression analysis - ANSWER A statistical tool for decision making It will • Show whether a increase in X (e.g. spending) will produce or cause an increase in Y (e.g. profit). • Calculate the magnitude of the increase in Y. attempts to explain movements in one variable "dependent variable" as a function of movements in a set of other variables, called independent (explanatory)variables. Caution with the dependent and independent because not necessarily imply causality Causality...