Economics20-DartmouthCollege.docVIP

Economics 20 Prof. Patricia M. Anderson Study Guide for the Midterm This is not meant to represent an exhaustive list of the knowledge required to do well on the midterm. Rather, it outlines the major areas we’ve covered, helping you to pinpoint areas where you might need to do further work to fully understand the material. Basics of the OLS Estimator The goal of econometrics is to use sample data to obtain estimates of unknown population parameters. For the population model: , we can use ordinary least squares OLS to obtain a sample model: . and thus get a sample prediction: . The OLS