University of Leeds - Statistics and Econometrics (LUBS2575)

The LUBS2575: Statistics and Econometrics module provides students with an intermediate-level understanding of mathematical statistics and an introduction to applied econometric techniques using relevant software. It builds on knowledge from introductory statistics and focuses first on applying statistical theory to real-world problems across the social sciences. The module then progresses to econometrics, covering Ordinary Least Squares (OLS) regression analysis with cross-sectional data - starting with simple linear models and advancing to multivariate regression. Students will learn to interpret results, assess model validity, and apply these techniques in fields such as economics, accounting, and finance. By the end, students will understand continuous random variables, bivariate distributions, econometric methods, and be able to critically analyse literature using OLS.

Syllabus:

• Random Variables and Probability Distributions (one and two variables)
• Properties of Probability Distributions (expected value, variance, covariance)
• Important Probability Distributions (normal distribution, t-distribution, F-distribution, Chi-square distribution)
• Samples and Sampling Distributions
• Estimation
• Hypothesis testing
• Confidence intervals
• The nature of econometrics
• The simple linear regression model and its assumptions
• The ordinary least squares (OLS) estimator
• Estimation and statistical inference.
• The multiple linear regression model
• Assessing the validity of the OLS estimator: factors affecting efficiency and consistency.

Pre-requisites include either LUBS1285 or both MATH1710 and MATH1712. This module is not available to students taking LUBS2227: Financial Econometrics.