By: Kaleem

Formula Sheet Econometrics

Percentage Change

1
1
% 100
t t
t
Y Y
change
Y

= (1.1)

1
% [ln( ) ln( )] 100
t t
change Y Y

~ (1.2)
Mean

1
N
i
i
Y
Y
N
=
=

(1.3)
Standard Deviation

2
( )
1
i
Y Y
s
N

(1.4)
Variance

2
2
( )
1
i
Y Y
s
N

(1.5)
Mean of the probability distribution for X, expected value, mathematical expectation of X
( ) ( ) E X Xp X = =

(1.6)
Variance of probability distribution

2 2 2
( ) ( ) ( ) E X X p X o = =

(1.7)
Standard Deviation

2
( ) ( ) ( ) E X X p X o = =

(1.8)
Covariance

1
( )( )
( , )
1
N
i i
i
Y Y X X
COV Y X
N
=

=

(1.9)
Correlation

( , )
Y X
COR Y X
r
s s
= (1.10)
By: Kaleem

( 1)
M variable possibe correlations
2
M M
For

= (1.11)
Regression Model

i i i
Y X o | c = + + (1.12)
Error term

i i i
Y X c o | = + (1.13)
Fitted Regression Line



i i
Y X o | = + (1.14)
Regression Residuals

i i i
Y X c o | = + (1.15)
Sum of Squared Residuals

2
1

N
i
i
SSR c
=
=

(1.16)

2
1

( )
N
i i
i
SSR Y X o |
=
= +

(1.17)

2
1

( )
N
i i
i
SSR Y Y
=
=

(1.18)
R
2


2
1
( )
N
i
i
TSS Y Y
=
=

(1.19)

2
1

( )
N
i
i
RSS Y Y
=
=

(1.20)
TSS RSS SSR = + (1.21)

2
RSS
R
TSS
= (1.22)

2
1
SSR
R
TSS
= (1.23)