Part 4 | Bivariate GLM

// build simple models of relationships //

Part 4 introduces the workhorse of empirical economics: regression analysis. In Part 3, we developed the simplest statistical model of samples with unknown population parameters. This model allowed us to test simple hypotheses about the population parameters. But economic relationships are rarely so simple. The General Linear Model not only lets us test simple hypotheses, but also lets us handle relationships between variables of different types - continuous, categorical, and their interactions - while maintaining our core tools of visualization and residual analysis. These tools are the foundation of modern science.

MiniExams

MiniExam 4 will be held on Thursday November 13 and will test your understanding of everything in Part 4: numerical predictors, model assumptions, categorical predictors, and timeseries models.