This book is in Open Review. We want your feedback to make the book better for you and other students. You may annotate some text by selecting it with the cursor and then click "Annotate" in the pop-up menu. You can also see the annotations of others: click the arrow in the upper right hand corner of the page

3 A Review of Statistics using R

This section reviews important statistical concepts:

  • Estimation of unknown population parameters

  • Hypothesis testing

  • Confidence intervals

These methods are heavily used in econometrics. We will discuss them in the simple context of inference about an unknown population mean and discuss several applications in R. These R applications rely on the following packages which are not part of the base version of R:

  • readxl - allows to import data from Excel to R.

  • dplyr - provides a flexible grammar for data manipulation.

  • MASS - a collection of functions for applied statistics.

Make sure these are installed before you go ahead and try to replicate the examples. The safest way to do so is by checking whether the following code chunk executes without any errors.