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WorksheetsLECTURE 1 &2- RECAP
Total questions: 15
Worksheet time: 26mins
What is the main purpose of econometrics?
To create economic policies without data
To measure and analyse economic relationships using data
To develop mathematical models unrelated to economics
To predict random events
Organize these options into the right categories
Annual inflation rate in Malaysia from 1990 to 2024
GDP growth of 10 ASEAN countries recorded yearly from 2010 to 2024.
Monthly unemployment rates in Malaysia before and after the COVID-19 pandemic
Salary, education, and years of experience of 500 workers surveyed once in 2024.
Income, education, and age of 1,000 Malaysians collected in 2023.
Profitability of 50 firms observed every quarter for five years.
Quarterly inflation rates of Malaysia, Thailand, and Indonesia for 15 years.
Comparison of minimum wage levels across Malaysian states in 2022
Daily stock prices of PETRONAS shares during 2024.
Consumer spending patterns of 200 households tracked from 2010 to 2020.
Econometrics combines (a) and mathematics to explain or predict economic behaviour.
Click on the step where economists/researcher would explore official sources such as the World Bank, IMF, or Department of Statistics before estimating their models.
Arrange the following steps of econometric analysis in the correct order:
Review theory & past empirical studies
Build Model
Collect Data
Analyse, interpret & estimate
Conclude and policy implications
Which statement best describes Ceteris Paribus?
Comparing two unrelated variables
Holding other relevant factors constant to isolate causal effect
Ignoring random errors
Assuming perfect data
Click on the region that best represents the long-term trend in economic growth.
Examine the graph showing global GDP growth from 1980 to 2030.
Click on the periods that represent major global economic shocks.
Click on the period that shows the strongest rebound following a global downturn.
Study the graph showing Malaysia’s monthly electricity consumption from 2018 to 2024.
Click on the section that best represents seasonality.
Which of the following best describes regression analysis?
A method for describing random data patterns
A statistical technique used to model relationships between variables
A tool for calculating averages
A formula for finding the median
Match the following
Dependent variable
Observed and measured as effect
Independent variable
Manipulated or changes as cause
Error term
other unobserved factors
Intercept (β₀)
Y when X = 0
Slope (β1)
Δ y/ Δ x
Reorder the following Simple Linear Regression Model
Y
= β₀
+ β₁
X
+ u
Given the estimated model:
Wage = −0.90 + 0.54(Education) + u
How should you interpret the slope coefficient (0.54)?
Wage = wage earned ($/hour)
Education = years of education (years)
The average wage is $0.54/hour
Wage decreases as education increases
For every additional year of education, wage increases by $0.54/hour
The intercept equals the average education
Match OLS Assumption to Definition (Gauss–Markov)
Linearity
Relationship between X and Y
Random Sampling
Data represent population
Variations in X
X must vary across observations
Zero conditional mean
error term uncorrelated with X
Homoscedasticity
variance of error is constant across X
