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What Do you understand by the term Econometrics?
Econometrics is a part of the branch subject, Economics, which includes applied mathematics, statistics, computer, and economic data. It is used for testing and quantifying the theories of economics for solving economic-related issues. The main target of econometrics is the converting of qualitative statements to quantitative ones.
We can make use of the econometric ways in different economic branches, to name a few, Labour Economics, Macroeconomics, microeconomics, and others. Econometrics helps a student in analyzing the data of any business.
Examples of Econometrics
Econometrics is an individual branch of economics, including applying mathematics, statistics, and computer science to economic data. It is used to test and quantify economic theories to solve economic problems. The main aim of econometrics is to convert qualitative statements into quantitative statements.
We can use econometric methods in many branches of economics such as Labour Economics, Microeconomics & macroeconomics. Econometrics will help you to analyze the data of a business.
Two divisions of Econometrics
Theoretical econometrics
It is all about the research of properties that exists in the actual tests and ways of evaluating the query. Thus, Theoretical econometrics completely depends on mathematics, theoretical based statistics, and numerical methods for proving that the new techniques can bring the most accurate information.
Applied econometrics
Applied econometrics talks about statistical ways of economic data. It focuses on empirical content related to Economics. Applied econometricians talk about econometric techniques set by scholars for interpreting the financial and quantitative explanations.
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