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Index

1. Introduction

2. Concept of regression

3. Econometric models and regressions

4. Type of regressions and key elements

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Objetives

1. Understand the concept of a regression, its o!ecti"e, pro

and cons.

2. Understand the scope of econometrics and the role ofregressions among other econometric techni#ues

3. Identify the key elements of a regression.

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Readings&links

$ This slides and class notes.

$ %u!arati y &orter '2(()* + ed. -asic Econometrics

$ ny other ook on -asic Econometric nalysis 'introduction to econometrics,

etc.*.

$ /yndman, 0. and thanasopoulos, %.. orecasting principles and practice.

Ed. tet.com "ailale in paperack and online at https55666.otets.org5fpp5

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https://www.otexts.org/fpp/https://www.otexts.org/fpp/

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5

1. Introduction

Sales forecast and analysis - Topic 2: LRM- Introduction

&re"ious

techni#ues

oundations Etract historical patterns and apply them in

forecasting future. /istorical techni#ues.

7ource of information 6n series.

0egression

analysis

oundations naly8e relationships et6een the target

"ariale 'dependent* and other "ariales 'independent*.

Casualty model. The dependent "ariale 6ill e epressed as

a function of a certain numer of factors that determine itseha"ior.

7ource of information ther "ariales

-asic understanding The regression model as a frame6ork for the analysis ofrelationships among "ariales

Technical kno6 ho6 /o6 to formulate a regression model, estimate itsparameters, and understand the implications of the estimated model.

In thiscourse

6e 6ill

otain

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6Sales forecast and analysis - Topic 2: LRM- Introduction

2. The concept of regression

2.1. Introducction: Why might it help to have extra-series information?

9ets try to forecast the consumption of a family. The data refer to a total population

of :( families, 6here ; is their 6eekly income and Y their weekly consumptionexpenditure, both in dollars. The families are di"ided into 1( income groups and

the 6eekly ependitures of each family are as sho6n in the tale.

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