Advanced Economic Statistics

Course Overview

This course introduces probability theory and statistical inference, with applications in economic modeling and data analysis. The first part covers probability concepts, random variables, and probability distributions, while the second part focuses on sampling distributions, estimation, and hypothesis testing.

📌 Note: This course consists of two parts. I am responsible for teaching Part 1 (Probability Theory). Part 2 (Statistical Inference) will be covered by another instructor.

Course Outline

Part 1: Probability Theory (Instructor: [Your Name])

1. Introduction to Statistics (3 hr.)
   
   
   

   • Role of Statistics in Economic Analysis

   • Descriptive vs. Inferential Statistics

2. Probability Theory (6 hr.)
   
   
   

   • Basic Probability Axioms & Rules

   • Conditional Probability & Bayes’ Theorem

3. Discrete Random Variables and Their Probability Distributions (6 hr.)
   
   
   

   • Bernoulli, Binomial, Geometric, Poisson Distributions

   • Expected Value, Variance, and Moments

4. Continuous Random Variables and Their Probability Distributions (6 hr.)
   
   
   

   • Uniform, Normal, Exponential, Log-Normal Distributions

   • The Importance of the Normal Distribution in Economics

5. Multivariate Probability Distributions (6 hr.)
   
   
   

   • Joint, Marginal, and Conditional Distributions

   • Covariance, Correlation, and Independence

📌 Total: 27 Hours

Part 2: Statistical Inference (Instructor: TBD)

6. Sampling Distributions and the Central Limit Theorem (6 hr.)

7. Properties of Point Estimators and Methods of Estimation (6 hr.)

8. Hypothesis Testing (4.5 hr.)

9. Group Work / Case Studies (1.5 hr.)

📌 Total: 18 Hours

Reading Materials

Main Textbook:

• Dennis D. Wackerly, William Mendenhall III, and Richard L. Scheaffer (2008) – Mathematical Statistics with Applications

Supplementary Readings:

• Speegle, D., & Clair, B. (2022) – Probability, Statistics, and Data: A Fresh Approach Using R

• Casella, G., & Berger, R. L. (2002) – Statistical Inference