Ordinary Least Squares (OLS): Derivation, Assumptions, and Why Omitted Variable Bias Ruins Everything

Econometrics, Regression Analysis, Statistics

Introduction: The Workhorse of Empirical Economics Almost every empirical claim you have ever read in economics — that education raises earnings, that minimum wages do or do not cost jobs, that carbon taxes reduce emissions — rests on a regression. Usually an ordinary...

Cracking Economic Indicators: A Beginner’s Guide to Market Signals

Basic Economics Goals, Development Economics, Macroeconomics, Microeconomics

In the world of finance and investing, economic indicators play a crucial role in providing valuable insights into the overall health and direction of the economy. These indicators serve as important signals, guiding investors, policymakers, and businesses in making...

Complete EconTutorials Content Library

Econometrics, Macroeconomics, Microeconomics, Misc, Statistics

Welcome to the EconTutorials Content LibraryEverything published on EconTutorials — in one place, organised by subject. Whether you’re studying for AP Economics, Cambridge A-Level, IB, or undergraduate exams, use this page to find exactly what you need.🛒...

What are Index Numbers ?

Index Numbers, Statistics

Introduction Often we want to know how certain variables like prices, production, etc. have changed over time and space. For example, we may like to compare the change in the average retail price of milk in 1985 with that in 1982 or we may like to compare the retail...

Dependent, Independent and Conditional Probability

Probability, Statistics

Independent and Dependent Events The events A and B are said to be independent if the occurrence or non-occurrence of event A does not affect the probability of occurrence of B. This means that irrespective whether event A has occurred or not, the probability of B is...

Probability with examples

Probability, Statistics

Probability Definition ”If an experiment can result in n equally likely, mutually exclusive and exhaustive outcomes and m of which are favorable to the occurrences of an event A, the probability that the event A will occur is given by the ratio m/n. Symbolically, the...

Sample Space in Statistics

Probability, Statistics

Introduction The idea of probability is familiar to everyone. In our daily life we make statements such as the following; “It is likely to rain today.” “I will probably go abroad this year.” “I am almost sure that I will win this game.” “The probability that nuclear...

Standard Deviation

Statistics

Definition Standard deviation is the positive square root of the mean of the squared deviations of values from their mean. It measures how spread out the values in a dataset are around the average. Standard deviation is the most widely used measure of dispersion in...

Quartile Deviation

Statistics

Definition The quartile deviation is half the difference between the third quartile and the first quartile of a frequency distribution, or simply distribution. Mathematically, quartile deviation would be represented as follows; Quartile deviation is also known as...

Basics of Correlation

Statistics

  Definition “Correlation is an analysis in which we study the degree of closeness of relationship between the variables.” Explanation Where the values of two variables vary in such a way that the movements i.e. increase or decrease, in one variable is connected...