MET2 Statistics for Economists

• Topics

  This course provides a fundamental introduction to statistics and probability theory, focusing on both theoretical principles and practical applications. Students will gain a solid understanding of key concepts and methods in statistics, probability models, and data analysis.

  The topics covered in the course include:

  • Descriptive statistics
  • Probability theory
  • Combinatorics
  • Conditional probability
  • Random variables, mean, and variance
  • Joint distributions
  • Common probability distributions
  • Estimation and estimators
  • Hypothesis testing
  • Particular hypothesis tests
  • Linear regression in one and several variables

• Learning outcome

  Upon completion of the course the students can:

  Knowledge

  • Apply established statistical methods to analyze statistical data and avoid the most common pitfalls in such analyses.

   Skills

  • Present and interpret statistical data using central and dispersion measures, frequency distributions and graphical methods.
  • Carry out basic probability calculations, including the use of probability models, combinatorics, sampling models, conditional probabilities, the law of total probability, Bayes' law and independence.
  • Analyze probability distributions, calculate the expectation and variance of a random variable, and transfer this to linear combinations of random variables.
  • Use simultaneous probability distributions and can calculate expectation, variance and covariance.
  • Choose a probability model and calculate with discrete and continuous probability distributions, including Binomial distribution, Hypergeometric distribution, Poisson distribution, Normal distribution/Normal approximation and t-distribution.
  • Estimate unknown parameters. 
  • Carry out hypothesis testing in the most commonly used statistical models. The candidate can evaluate different test methods, and interpret significance level, significance probability and test strength.
  • Aanalyze covariation between two or more stochastic variables, both using regression analysis and by interpreting the correlation coefficient, and by estimating and interpreting the regression coefficient.

  General competence

  • Use statistical models to discuss issues within the economic subject area.
  • Express himself precisely and reason logically about quantitative related to the analysis of statistical data.
  • Work with statistical literature.

• Teaching

  Lectures

  • 18 plenary sessions
  • 2x2 hours repetitions the week before the exam

  Collaborative learning

  • 10 sessions of collaborative learning. The students are organized in mini-groups consisting of 4 persons and have 2 hours of such work each week. Mandatory participation in 6 out ot 10 sessions. 
  • 3  sessions are lead by the lecturer. 
  • 10 sets with problem sets for self-study. Students in need of support with these problems can seek help at oracle sessions. 
  • 1 set of voluntary assignments that can be commented by the teaching assistants.

  Multiple choice

  • 16 voluntary multiple choice tests, one for each plenary lecture. 

  Oracle

  • Student can seek help at oracle session every week throughout the semester.

• Credit reduction due to overlap

  Corresponds to MET040.

• Compulsory Activity

  Mandatory participation in 7 out of 10 sessions with collaborative learning. Of practical reasons the first session is mandatory. If students are unable to participate in the first session, they must inform the lecturer about this. 

  Mandatory test in Grasple. 

  Previously approved compulsory acitivities (work requirements) remain valid.

• Assessment

  Individual school exam (4 hours - pen and paper).

• Grading Scale

  A - F

• Computer tools

  R: The contents is covered by a booklet which can be downloaded from Canvas.

• Literature

  Alt 1: Ubøe. Statistikk for økonomifag, 6.utg., Gyldendal 2021

  Alt 2: Keller, Statistics for Management and Economics, 8th ed, Cengage Learning, 2009.

• Permitted Support Material

  All written support material permitted (category III) 

  Calculator 

  One bilingual dictionary (Category I) 

  All in accordance with Supplementary provisions to the Regulations for Full-time Study Programmes at the Norwegian School of Economics Ch.4 Permitted support material https://www.nhh.no/en/for-students/regulations/https://www.nhh.no/en/for-students/regulations/ and https://www.nhh.no/en/for-students/examinations/examination-support-materials/https://www.nhh.no/en/for-students/examinations/examination-support-materials/