ECON
310 is designed for students enrolled in the Bachelor of Arts degree program in
Administrative Studies. It is an upperlevel course in statistics that teaches
students how to solve problems in economics and business by applying
statistical principles. The topics covered include probability theory,
hypothesis testing, sampling methods and estimation, simple and multiple
regression and correlation analysis, analysis of variance and timeseries and
forecasting.
By the end of this course
students should be able to:
§
Calculate
probabilities using the rules of addition, rules of multiplication and Bayes’
theorem.
§
Describe
the characteristics and compute probabilities using the Binomial, Poisson and
Hypergeometric Probability distributions.
§
Distinguish
between discrete and continuous random variables.
§
Apply
central limit theorem to calculate probabilities in specific populations.
§
Estimate
population parameters from sample statistics with appropriate confidence
intervals and point estimators.
§
Conduct
one, two and matched sample hypothesis definition and testing.
§
Compare
the variability between groups with the variability within groups using the
oneway and twoway Analysis of Variance.
§
Use
simple and multiple regression models to estimate and test for linear
relationships between a dependent variable and one or more independent
variables.
§
Compute
simple and multiple correlation coefficients and test for their significance.
§
Construct
and interpret Laspeyres, Paasche, and value price indices.
§
Use
a timeseries model to identify and calculate trend and seasonal variation.
§
Use
trend equations to forecast future time periods and to develop seasonally
adjusted forecasts.
§
Practice
calculation of selected statistical tests using assigned computer programs and
web resources.
Probability is the foundation of statistical inference where the chance that something will occur in the future is estimated and calculated. In other words, it is the likelihood or chance that a particular event will occur. Inferential statistics involves taking a sample from a population, computing a statistic on the sample, and inferring from the resulting statistic what the value of the corresponding parameter of the population represented by the sample will be. Probability provides the link between describing and presenting information obtained from samples and being able to make inferences to relevant larger populations.
v Rule of Addition – used to compute the probability of the occurrence of a Union of two or more events.

Figure 1.2 Union of Two Events
Factorials are a shorthand way to reduce the amount of numeric notation in counting, basically indicating how many different ways an item can be sequenced. For instance:
6! = 6 x 5 x 4 x 3 x 2 x 1 = 720
5! = 5 x 4 x 3 x 2 x 1 = 120
4! = 4 x 3 x 2 x 1 = 24
3! = 3 x 2 x 1 = 6
2! = 2 x 1 = 2
1! = 1
0! = 1
The following will perform a hypothesis test for the difference of population means.
v Click Tools > Data Analysis
v In the window titled Data Analysis select tTest: TwoSamples Assuming Equal Variances and click OK.
v A new window titled tTest: TwoSamples Assuming Equal Variances should now appear. This window has many options. Below is a brief explanation of each:
§ Highlight the data from the 1st sample and put into Variable 1 Range
§ Highlight the data from the 2nd sample and put into Variable 2 Range
§ Hypothesized Mean Difference: is obtained from the null hypothesis. (i.e. Ho : 1  2 = Hypothesized Mean Difference )
§ Labels is used if the variable names were included under Variable Range
§ Alpha: is the level of significance for the test.
v You must select one of the following Output options:
· Click Output Range if you want the test results to be placed on the current sheet. Next, simply input the cell where you want the output to be placed.
· Click New Worksheet Ply if you want the test results to be placed on a new sheet. Next, type the name of the new sheet where you want the output to be placed.
· Click OK. The test results should be placed onto your spreadsheet.