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What Is Econometrics?

Econometrics is a subfield of economics that makes use of quantitative methods from other disciplines. It is used to put economic ideas to the test and quantify economic issues. The primary goal of econometrics is to provide numerical values for previously qualitative descriptions. It’s not just in “labour economics” or “microeconomics” or “macroeconomics” that we may apply econometric techniques. You may use econometrics to examine a company’s records.

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The term “econometrics” is used to refer to the study of how statistics may be used to the study of economic data and problems. The two primary branches of econometrics are theoretical econometrics and applied econometrics. Strategies, their attributes, and the creation of new ones are the primary focus of this domain. It is directly related to mathematical statistics and is the deciding factor in a method’s hypotheses and outcomes.