STATISTICAL METHODS FOR ECONOMICS

Paper Code: 
ECO 123
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 
  1. To develop an understanding of preliminary concepts of statistics used in economics. 
  2. To help the students examine the techniques of correlation, regression, time series and index numbers.
  3. To acquaint the students with the techniques of probability and hypothesis testing and their applications.

 

Course Outcomes (COs):

Course

Outcome (at course level)

Learning and teaching strategies

Assessment Strategies 

Paper Code

Paper Title

ECO 123

Statistical Methods for Economics

CO5: Students will interpret the concept of various descriptive measures.

CO6: Students will describe some commonly used discrete and continuous distributions of random variables and test hypotheses about parameters.

CO7: Students will analyse data in everyday life using different statistical techniques.

Approach in teaching: Interactive Lectures and Discussions.

 

Learning activities for the students:

Practice Modules and

Assignments.

Class activity, Assignments and Semester end examinations.

 

12.00
Unit I: 
Univariate Analysis

Measures of Central Tendency, Dispersion, Skewness and Kurtosis

12.00
Unit II: 
Bivariate Analysis

Simple Correlation- Karl Pearson’s correlation coefficient and Spearman’s rank correlation coefficient. Simple Regression analysis.

12.00
Unit III: 
Time Series analysis

Components of time series, measurement of trend (moving averages & least squares) and seasonal variation (simple averages).

Index numbers

Construction of Unweighted and Weighted Index Numbers, Tests of Adequacy, Cost of Living Index, Chain index, Base shifting, Splicing, use of index numbers for deflating. 

12.00
Unit IV: 
Probability

Probability - definition, Theorems of Addition and Multiplication, Conditional Probability, Bayes Theorem, Mathematical Expectation.

Probability Distributions

Binomial, Poisson and Normal distributions.

12.00
Unit V: 
Hypothesis testing

Procedure of hypothesis testing.

Use of Z (single mean, difference of means, single proportion, difference of proportions), t (one sample, independent samples and paired samples), chi-square (goodness of fit and independence of attributes) & F (one-way & two-way ANOVA) tests.

Essential Readings: 
  1. Gupta, S.P.  Statistical Methods, S Chand & Company, New Delhi, 2012.
  2. Speigal, Murray R., Statistics, Schaum’s Outlines, McGraw Hill Education, 1998.
  3. Spiegel, Murray R., Schiller, John, Srinivasan, R. Alu and Goswai, Debasree, Probability and Statistics, McGraw Hill Education, 2017.

 

  1. Croxton, Frederick E., Crowden, Dudley, J. and Klein, Sydney, Applied General Statistics, Prentice Hall of India, New Delhi, 3rd edition, 1979.

 

  1. Nagar, A.L. and Das R.K., Basic Statistics, Oxford University Press, 1997.

 

Academic Session: 
2021-22
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