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1. 1. The general linear model All econometric research is based on a set of numerical data relating to certain economic quantities, and makes infer­ ences from the data about the ways in which these quanti­ ties are related (Malinvaud 1970, p. 3). The linear relation is frequently encountered in applied econometrics. Let y and x denote two economic quantities, then the linear relation between y and x is formalized by: where {31 and {32 are constants. When {31 and {32 are known numbers, the value of y can be calculated for every given value of x. Here y is the dependent variable and x is the explanatory variable. In practical situations {31 and {32 are unknown. We assume that a set of n observations on y and x is available. When plotting the ob­ served pairs (x l' YI)' (x ' Y2)' . . . , (x , Y n) into a diagram with x 2 n measured along the horizontal axis and y along the vertical axis it rarely occurs that all points lie on a straight line. Generally, no b 1 and b exist such that Yi = b + b x for i = 1,2, . . . ,n. Unless 2 l 2 i the diagram clearly suggests another type of relation, for instance quadratic or exponential, it is customary to adopt linearity in order to keep the analysis as simple as possible.

Mathematical statistics --- Economics --- Error analysis (Mathematics) --- Mathematical models --- #TELE:SISTA --- Theses --- Business & Economics --- Economic Theory --- Economics, Mathematical --- Errors, Theory of --- Instrumental variables (Statistics) --- Numerical analysis --- Statistics --- Economics - Mathematical models

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Numerical analysis --- Computer science --- Error analysis (Mathematics) --- Data processing --- -519.6 --- 681.3 *G10 --- Mathematical analysis --- Errors, Theory of --- Instrumental variables (Statistics) --- Mathematical statistics --- Statistics --- Computational mathematics. Numerical analysis. Computer programming --- Computerwetenschap--?*G10 --- 519.6 Computational mathematics. Numerical analysis. Computer programming --- 519.6 --- Numerical analysis - Data processing --- Error analysis(Mathematics) --- Numerical analysis-data processing

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Mathematical statistics --- Error analysis (Mathematics) --- Surveys --- wiskundige statistiek --- #SBIB:303H510 --- 303.3 --- 304.8 --- AA / International- internationaal --- 303.7 --- Government surveys --- Mathematical geography --- Errors, Theory of --- Instrumental variables (Statistics) --- Numerical analysis --- Statistics --- 303.7 Analysetechnieken. Statistische analyse --(sociaal onderzoek) --- Analysetechnieken. Statistische analyse --(sociaal onderzoek) --- Methoden sociale wetenschappen: statistische technieken, algemeen --- Waarschijnlijkheid. Probabiliteit. Nauwkeurigheid. Residuals: measurement and specification (wiskundige statistiek) --- Steekproeftheorie --- Error analysis (Mathematics). --- Surveys.

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Numerical solutions of algebraic equations --- Numerical solutions of differential equations --- 519.61 --- Error analysis (Mathematics) --- Numerical calculations --- Reaction-diffusion equations --- Diffusion-reaction equations --- Equations, Reaction-diffusion --- Differential equations, Parabolic --- Numerical analysis --- Errors, Theory of --- Instrumental variables (Statistics) --- Mathematical statistics --- Statistics --- Numerical methods of algebra --- Numerical calculations. --- Reaction-diffusion equations. --- Error analysis (Mathematics). --- 519.61 Numerical methods of algebra --- Équations de réaction-diffusion --- Calculs numériques --- Calcul d'erreur --- Équations de réaction-diffusion. --- Calculs numériques. --- Calcul d'erreur.

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Measuring methods in physics --- Mathematical physics --- Physical measurements. --- Error analysis (Mathematics) --- Mathematical physics. --- Mesures physiques --- Erreurs, Théorie des --- Physique mathématique --- Physics --- Mesure --- Measurement --- 53.088 --- Physical measurements --- #WSCH:AAS1 --- Measurements, Physical --- Physical mathematics --- Errors, Theory of --- Instrumental variables (Statistics) --- Mathematical statistics --- Numerical analysis --- Statistics --- Errors. Error correction. Evaluation, interpretation of measurements --- Mathematics --- Error analysis (Mathematics). --- 53.088 Errors. Error correction. Evaluation, interpretation of measurements --- Erreurs, Théorie des --- Physique mathématique --- MATHEMATICAL PHYSICS --- MATHEMATICS --- ERROR ANALYSIS --- Monograph --- Mathematics. --- Math --- Science --- Statistique mathématique --- Mathematical statistics. --- Statistique mathématique --- Physique statistique --- Calcul d'erreur --- Theorie des erreurs