21400
1-1: What is Econometrics? Econometrics is based upon the development of statistical methods for estimating economic relationships, testing economic theories, and evaluating & implementing government and business policy. A common application is forecasting macroeconomic variables such as GDP or inflation. Econometrics has evolved as a separate discipline from mathematical statistics because the former focuses on the problems inherent in collecting and analyzing nonexperimental economic data. Non
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