Students taking this course are able to
- describe the expected value and variance of a random variable whose distribution is common in economic applications;
- understand the concepts of conditional and unconditional probabilities, compute the confidence interval for a population parameter at a given significance level;
- be familiar with the desirable properties of an estimator and the methods of estimation used commonly in quantitative economics;
- interpret the central limit theorem;
- explain why a causal effect between two economic variables requires an analysis beyond the correlation between the two;
- comprehend how a hypothesis can be tested, and understand the meaning of Type I and Type II errors in hypothesis testing.