4  Week 3 Online Learning

Learning objectives. After this week you will be able to

• to be written;
• to be written;
• to be written.

4.1 The problem

The practical question that motivates the week.

4.2 The method

The econometrics, with the minimum algebra that is honest.

4.3 In Python

Every lesson opens with the same preamble. Change the fence to {python} to make it execute.

import numpy as np
import pandas as pd
import plotly.graph_objects as go
from plotly.subplots import make_subplots
from scipy import stats
import fe1tools as fe

fe.setup()          # plot theme, display options, random seed
BLUE, ORANGE, AQUA = fe.PALETTE["blue"], fe.PALETTE["orange"], fe.PALETTE["aqua"]

4.4 Reading the output

How a professional interprets the result.

4.5 What can go wrong

Assumptions, diagnostics, and common misuse.

Key takeaways

• To be written once the week is drafted.

Check your understanding

Five multiple-choice questions, each with a collapsed answer giving the explanation and a hint written against the specific misunderstanding behind every wrong option. Follow the pattern established in Chapter 1.