Uses of econometri - Study guides, Class notes & Summaries
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Econometrics Chapter 1 EXAM QUESTIONS AND ANSWERS 100% CORRECT!
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Regression analysis - ANSWER A statistical tool for decision making 
It will 
• Show whether a increase in X (e.g. spending) will produce or cause an increase in Y (e.g. profit). 
• Calculate the magnitude of the increase in Y. 
attempts to explain movements in one variable "dependent variable" as a function of movements in a set of other variables, called independent (explanatory)variables. 
Caution with the dependent and independent because not necessarily imply causality 
 
Causality...
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