Econometrics is a process that utilizes mathematical and statistical models to analyze and test economic theories in order to verify hypotheses and improve the prediction of trends. Econometrics can be applied to just about anything. It is most often used to develop predictive models of how something (consumer behavior, inflation, investments, labor trends, productivity, test scores, etc.) will respond to specific changes. These changes or variables can be a single factor or a set of factors. Be sure to use the tools on this page to understand the concepts of causation and correlation, as well as the language of econometrics!
You may refer to the PowerPoint presentation below for tips on conducting your research and improving your final research product.
When collecting, analyzing, and reporting on data it is absolutely IMPERATIVE to understand the distinction between correlation and causation. Consult the following links for definitions and explanations:
