ECON-2006EG Study Guide - Quiz Guide: Natural Experiment
7 Mar 2021
School
Department
Course
Professor
Document Summary
Scientific method is the name for the ongoing process that economists and other scientists use to: develop models of the world, test those models with data. A model: is a simplified description or representation, of the world. Sometimes, economists will refer to a model as a theory. Data: are facts, measurements, or statistics that describes the world. Empirical evidence: is a set of facts established by observation and measurement. Hypotheses: are predictions that can be tested with data. Example investing in one extra year of education increases your future wages by 10 percent. A model is an approximation and a model makes predictions that can be tested with data. The mean, or average: is the sum of all different values divided by the number of values. A key strength of economic analysis is the amount of data used. Economists call using a lot of data observations.
