ECONOMETRICS

QUESTION A2 (15 marks) (a) Explain the importance of continuous variables. How do we dene the probability P(X) of a continuous random variable? Provide two examples of continuous random variables. (b) Explain what is meant by a discrete random variable (X), its expected value and standard deviation. (c) What is the usefulness of the Central Limit Theorem? (d) Given that the Population Regression Function (PRF) is unobservable, why should we bother studying it? (5} (4} (3} (3}