ECON 221 Chapter Notes - Chapter 2: Natural Experiment, Scientific Method
Document Summary
Scientific method: the scientific method is the name for the ongoing process that economists and other scientists use to (1) develop models of the world and (2) test those models with data. Model: a model is a simplified description, or representation, of reality. Sometimes, economists will refer to a model as a theory. Data: data are facts, measurements, or statistics that describe the world. Empirical evidence: empirical evidence is a set of facts established by observation and measurement. Hypotheses: hypotheses are predictions (typically generated by a model) that can be tested with data. Mean (average): the mean, or average, is the sum of all the different values divided by the number of values. Causation: causation occurs when one thing directly affects another through a cause- and-effect relationship. Correlation: a correlation means that there is a mutual relationship between two things. Variable: a variable is a factor that is likely to change or vary.
