25020 Applied Regression Analysis

Subject level: Undergraduate

Handbook description

This subject is designed to enhance students' ability to apply principles and critical thinking abilities developed in other economics and finance subjects. It focuses on practical economic and financial problems and enables students to: learn a range of new quantitative skills; improve their ability to interpret and draw conclusions from data; test explanations and propositions about real world phenomenon affecting the business environment; and employ basic forecasting techniques.

Subject objectives/outcomes

On successful completion of this subject students should be able to:

1. apply their knowledge of economic and financial principles to assess real world issues and problems
2. employ multivariate statistical modelling techniques to appropriate data
3. undertake basic forecasting of some key economic variables.

Contribution to graduate profile

This subject provides an opportunity for students to consolidate their study of economics and finance and to apply theoretical knowledge and skills learned in earlier subjects to particular real world problems and issues. It prepares students for entry into the work force by focusing on the development of practical skills and the application of skills and critical abilities that the student has already developed.

Teaching and learning strategies

Teaching strategies include: lecture format; computer based tutorials and workshops; and practically oriented problem case studies. There will be a strong emphasis on active student involvement in the formal learning sessions where students will be asked regularly to apply what they have learned in the subject and to draw upon the knowledge and judgment they have developed from previous subjects.

Content

The subject covers:

• multiple regression and associated problems of estimation including autocorrelation, multicollinearity and heteroskedasticity
• functional forms of the regression model; regression with dummy variables; and model specification
• simultaneous equation model estimation
• basic time series modelling including ARMA, Box Jenkins and cointegration methodologies
• empirical examination of a range of theories in economics and finance.

Assessment

Assessment item 1: Group or Individual Assignments

Assessment item 2: Final Examination