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Econometric Theory Assignment Help

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What is econometric theory?

Applications of statistical and mathematical theories in economics are termed as econometric theory. It is used for testing hypothesis and forecasting future trends in the economy of a country. This subject is based on mostly in data analysis and regression analysis.So student you may realize that it is a study of statistical techniques to understand economic analysis and test theories. Without evidence economic theories are baseless and have no connection with reality. So you have to work hard and spend lots of time to make your assignment foolproof. Are you worried? Take it easy; myhomeworkhelp.com is always there with its instant econometric theory homework help.

How econometric theory works?

This subject is used for economic analysis in several steps

  • The first step is to look at the set of data and select the definite hypothesis which can explain the nature and shape of the set. The explanatory variables for analyzing are also specified in this stage.
  • Second step is to select the specific statistical tool or model to test the selected hypothesis. In this stage an effective model or tools draws a specific mathematical or relationship between explanatory variables and dependent variables is also tested.
  • In third step, all the data is imputed into software which is made for econometric analysis. Then the program uses the selected statistical model and provided economic data for estimating the result.
  • The last step is very important as providing the validity of hypothesis. Economists take this result but conduct a farther test to understand whether the result is a right prediction or not.

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Whyeconometric theory is important

Learning econometric theory is important because:

  • It provides the tools that help to pull out the important information from available data for economic policy.
  • It is used to generate forecasts, as different banks use these econometric techniques to determine the level that the base interest rate should be set for every month.
  • Learning this subject is beneficial for student’s academic life also as it enhance their jobs prospect.

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