class: center, middle, inverse, title-slide # Midterm Review ## EC 320: Introduction to Econometrics ### Winter 2022 --- class: inverse, middle # Prologue --- # Housekeeping Midterm 1 on Wednesday - No lab this week Problem Set 1 solution posted --- # Grades ## Exercises .hi[Kyu is the person of contact] - [kyutarom@uoregon.edu](mailto:kyutarom@uoregon.edu) - Zoom **Q:** Why? <br> **A:** To ensure *consistency in grading.* ## Problem sets and exams .hi[I am the person of contact] - [bchang@uoregon.edu](mailto:bchang@uoregon.edu) - PLC 420 --- class: inverse, middle # Midterm I: High Concepts --- # Midterm Topics .green[Anything from the lectures, labs, or problem sets] .hi-green[is fair game!] 1. Probability Theory 2. Statistics 3. The Fundamental Problem of Econometrics 4. Randomized Control Trials 5. The Logic of Regression 6. Tidy Data and .mono[R] (bonus points) --- # Midterm Topics ## 1. Probability Theory Random variables - Sketch out the probability distribution of a random variable. Expected values Population variance --- # Midterm Topics ## 2. Statistics Estimators - Population *v.s.* sample distinction. - Sample mean, sample variance, sample covariance, sample correlation coefficient. - Unbiasedness and efficiency. Hypothesis testing - Statistical significance. - `\(t\)`-statistics. - Two-sided `\(t\)` tests using rule of thumb discussed in class (*i.e.,* compare `\(t\)` to `\(t_{\text{crit}} = 2\)`). --- # Midterm Topics ## 3. The Fundamental Problem of Econometrics Causal mechanisms *v.s.* confounding factors Ideal data on potential outcomes - Individual *v.s.* average treatment effects. - Difference-in-means based on observable data. Selection bias --- # Midterm Topics ## 4. Randomized Control Trials How do RCTs eliminate selection bias? - Can an RCT fail to eliminate selection bias? How? -- Research questions - Identify outcome variable and treatment variable. Estimation using experimental data - Difference-in-means. - Linear regression. --- # Midterm Topics ## 5. The Logic of Regression Regression models - Identify outcome variable, treatment variable, and control variables. Estimation using OLS - How does OLS adjust treatment effect estimates for confounding factors? --- # Midterm Topics ## 5. The Logic of Regression (cont.) Omitted variables - When does omitting a variable cause omitted-variable bias? - Illustrate assumptions with causal diagrams. Regression tables - Write down model. - Calculate omitted-variable bias. --- # Midterm Topics ## 6. Tidy Data and .mono[R] For earning bonus points! [will be either multiple choice question or true/false question] Identify .mono[R] functions - What does the function do? - I will only ask you about functions you've seen in lab. - .hi[I will not ask you to write code.] Which one of the following code produce below output? - Example: Console output of .mono[filter()] or .mono[select()]. --- # Midterm Structure ## Multiple Choice - 5 questions - 6 points per question (30 points total) ## True or False - 5 questions - 6 points per question (30 points total) - ~~Brief explanations required for full credit~~ ## Free Response - 5 multi-part questions with varying numbers of points (50 points total) - Explanations required for full credit --- # Midterm Protocol ## Materials - Writing utensil - 3-inch-by-5-inch note card - Basic or scientific calculator (no graphing or programming capabilities) - .hi[Nothing else] ## Procedure - 80 minutes from *"you may begin"* to *"pencils down"* - First 30 minutes: .hi[quiet period] (no questions, no getting up) - Last 50 minutes: ask lots of questions