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Statistical Methods for Economics [1]

Paper Code: 
25ECO 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: 

Course Outcomes (COs):

Course

Learning outcome (at course level)

Learning and teaching strategies

Assessment Strategies 

Course Code

Course Title

25ECO123

Statistical Methods for Economics

(Theory)

Students will:

CO13:  analyze measures of central tendency, dispersion, skewness and kurtosis of a data series

CO14:  analyze correlation and regression.

CO15:  analyze the time series and index numbers

CO16: analyze different aspects of probability.

CO17:  analyze statistical inference and hypothesis testing for different sample types.

CO18: contribute effectively in course-specific interaction.

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: 
  • Gupta, S.P.  Statistical Methods, S Chand & Company, 2012.

 

References: 

Suggested Readings:

  1. Speigal, Murray R., Statistics, Schaum’s Outlines, McGraw Hill Education, 1998.
  2. Spiegel, Murray R., Schiller, John, Srinivasan, R. Alu and Goswai, Debasree, Probability and Statistics, McGraw Hill Education, 2017.
  3. Croxton, Frederick E., Crowden, Dudley, J. and Klein, Sydney, Applied General Statistics, Prentice Hall of India, New Delhi, 3rd edition, 1979.
  4. Nagar, A.L. and Das R.K., Basic Statistics, Oxford University Press, 1997.

 

E Resources :

 

Journal:

  • Journal of Quantitative Economics

 

Academic Session: 
2025-26 [6]

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Source URL: https://economics.iisuniv.ac.in/courses/subjects/statistical-methods-economics-12

Links:
[1] https://economics.iisuniv.ac.in/courses/subjects/statistical-methods-economics-12
[2] https://ocw.mit.edu/courses/14-30-introduction-to-statistical-methods-in-economics-spring-2009/resources/mit14_30s09_lec12/
[3] https://epgp.inflibnet.ac.in/Home/ViewSubject?catid=NEp/xikgBgNtfA+sgFQAcA==
[4] https://people.richland.edu/james/lecture/m170/
[5] https://epwrf-iisu.refread.com/index.aspx
[6] https://economics.iisuniv.ac.in/academic-session/2025-26