Modules

In this MOOC, you will learn the basic ways of reasoning in Econometrics and you will see practical
applications in the fields of business, economics, and finance. The course consists of six modules
(and an optional module):

Simple regression
Multiple regression

Model selection

Endogeneity

Binary choice

Time series

Case Project

Building Blocks (optional)

The MOOC starts with the module on simple regression, where one variable of interest is linked to
one other variable that helps to explain the variable of interest. Module 2 extends this topic to
multiple regression for models with several explanatory factors, and module 3 considers methods
how to select your model from a wide range of possibilities.

Modules 1-3 provide the basis for three econometric topics of special interest. Module 4 discusses
endogeneity, which occurs in case there is mutual causation between the variable of interest and
one or several of the explanatory factors. Many applications involve so-called choice data, and
module 5 explains how to deal with binary variables of interest where the outcome is ”yes” or ”no”.
Another type of data that is very common in economics and finance consists of time series, where
the variables are measured at regular time intervals, and econometric methods for such data are
discussed in module 6.

Lectures and Training Exercises

For each module, an introduction lecture shows you the motivation. After you have seen lectures on
modelling, estimation, and model evaluation, we show you a practical application where you can
experience the power of econometrics in providing answers to relevant questions.

The training exercises provide you with hands-on experience how you can make, analyze, and
evaluate econometric models. In this way, you acquire active understanding of econometrics, so that
you can solve questions that interest you by analyzing data by means of econometrics.

Finally, the optional ”Building Blocks” module discusses the required background on matrices,
probability, and statistics.
What is confidence interval and the calculation of it!