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Econometrics relies on a lot of assumptions in order to work, most of which are completely impossible to believe. For example, we use the normal
Econometrics relies on a lot of assumptions in order to work, most of which are completely impossible to believe. For example, we use the normal distribution to learn things about the average value of wages. But wages are definitely not normally distributed! This means our conclusions are completely meaningless. Write a short response to your friend, identifying what parts of their statement are correct, and which ones aren't. Relate your answer to the ideas developed in class.
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