Statistics: Measurement in Economics

Econ 310 (4 Credits), Fall 2023

University of Wisconsin-Madison

Instructor

Christopher McKelvey, Lecturer, [email protected]

Teaching Assistants

Claire Kim, PhD Student, [email protected]

Jon Kroah, PhD Student, [email protected]
Ryan Mather, PhD Student, [email protected]

Instructional Mode

In-Person Classroom Instruction

Course Overview

This course provides an introduction to statistics. We will tackle three main topics. We
begin with an overview of descriptive statistics and statistical terminology. Next we
turn to probability, a branch of mathematics which provides us with the methods nec-
essary to reason about uncertain environments. Finally, we turn to the bread and but-
ter of statistics: estimation and inference. Particular attention will be paid to the appli-
cation of these tools to the analysis of economic data.

Prerequisites

Prerequisites for this class include (a) an introductory economics course and (b) Math
211 or Math 221.

Class Meetings and O ce Hours

Lecture is Tuesdays and Thursdays from 1:00 to 2:15pm in Van Vleck Hall B102.

My o ce hours are Wednesdays from 9:00 to 11am in Social Science 7321. Your TA
will announce his or her o ce hours at your rst discussion section.

Required Course Materials

Our textbook is: Statistics for Management and Economics by Gerald Keller, Eleventh
Edition. We will also be using MindTap (aka Aplia) for our problem sets. As noted in
the Course Guide, there is no need for you to purchase either the textbook or MindTap,
as the cost is bundled into your tuition bill via the Engage eText program. For more
information, including opt-out instructions, see the Engage eText Frequently Asked
Questions. Because you must access MindTap to complete the problem sets, it is es-
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sential that you do not opt-out of the Engage eText program unless you have access to
MindTap via other channels (e.g., through Cengage Unlimited).

This course requires frequent use of a computer (Mac or Windows) with a reliable in-
ternet connection. While completing the problem sets, midterms, and nal exam, you
will need a calculator with the following functions: xy, x!, and ex.

Course Website

All course materials will be posted on our course website on Canvas:

https://canvas.wisc.edu/courses/360044

Evaluation

Your overall grade for the course will be based on the following components:

• Aplia Problem Sets: There will be weekly Aplia problem sets, which together are
worth 24% of your overall grade – so completing them will be critical to your suc-
cess. The problem sets will be due each Monday by 11pm in the North American
Central Time Zone. Late problem sets will not be accepted for any reason, but
your lowest two Aplia problem set scores will be automatically dropped.

• Stata Problem Set: There will be one Stata problem set, which is worth 4% of your
overall grade for the course. For full credit, the problem set must be submitted
in Canvas before the submission deadline. Late problem sets may be submitted
after this deadline, but will receive a 20% per day deduction. To receive full credit,
you must submit your Stata log. You are encouraged to form a study group with
your classmates, but you must write up your answers independently (meaning
that you should not be looking at another student’s answers as you write up your
own). Problem sets with identical answers will not be accepted (i.e., receive
zero credit).

• Midterm Exams: There will be two in-class midterms, each worth 24% of your over-
all grade for the course. They must be taken in-person during our regularly
scheduled lectures on October 12 and November 16. These midterms will not
be rescheduled for any reason. On a case by case basis, in the event of a truly
unavoidable circumstance, I may elect to shift the weight of a midterm to the nal
exam. In order to qualify, you must notify me of the circumstance in advance of the
midterm, it must make completion of the midterm impossible, and it must be fully
documented.

• Final Exam: The (cumulative) nal for this class is worth 24% of your overall grade
and must be taken in-person during our o cial nal exam block from 5:05pm -
7:05pm on December 18. As with the midterm, in a class this size it is not possible
to reschedule the nal – even when students have multiple exams in a 24 hour peri-
od. However, if you have another exam at exactly the same time, then I am willing
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 to reschedule so long as you provide evidence of enrollment in a class with a con-
icting nal and notify me at least two weeks in advance.

Your overall grade for this class will be curved. This curve can help your grade, but
cannot hurt it. I achieve this by computing your grade using two di erent methods.
First, I assign grades according to a percentage scale, where A = [92,100], AB =
[88,92), B = [82,88), BC = [78,82), C = [70,78), D = [60,70), F = [0,60). (In other words, if
you receive a grade in the class of 92% or better, then you’ll receive an A.) Second, I
assign grades according to a percentile scale, where A = [83,100], AB = [65,83), B =
[45,65), BC = [25,45), C = [6,25), D = [3,6), F = [0,3). (In other words, if you perform bet-
ter than 83% of the class, then you’ll receive an A). Your overall grade in the class is
the higher of these two grades.

I strive to make all of the grading transparent and fair. If you are unhappy with the way
a problem has been graded, I encourage you to discuss it with me, but you must bring
the concern to me within two weeks of when you were rst able to view the graded
problem set or exam.

Learning Outcomes

Following the completion of this course, students will be able to:

• Interpret tables, graphs, and statistics used to summarize data (QRB-3)

• Apply probability theory to model the likelihood of uncertain events (QRB-1)

• Estimate the true value of unknown parameters using point and interval estimators
(QRB-2)

• Critically evaluate interpretations of statistical estimates and resulting inferences

(QRB-2 & QRB-3)

• Test theories by determining an appropriate test statistic, implementing a formal

hypothesis test, and interpreting the outcome (QRB-2)

• Use software to apply statistical techniques to the analysis of economic data

(QRB-1)

Credits

This class meets for two 75-minute class periods plus a single discussion session each
week over the semester and carries the expectation that students will work on course
learning activities (reading, writing, problem sets, studying, etc) for about 3 hours out of
the classroom for every class period. This syllabus includes more information about
meeting times and expectations for student work.
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 Students with Disabilities

If you have approval from the McBurney Center for disability-related accommodations,
please contact me to discuss how these accommodations will be implemented for this
course. This should be done as soon as possible, and no later than two weeks before
the rst exam.

Religious Observances

If an exam or problem set con icts with a religious observance, let me know and we’ll
work together to make an accommodation. This should be done as soon as possible,
and no later than two weeks before the con ict.

Grievance Procedure

The Department of Economics has developed a grievance procedure through which

you may register comments or complaints about a course, an instructor, or a teaching
assistant. The Department continues to provide a course evaluation each semester in
every class. If you wish to make anonymous complaints to an instructor or teaching
assistant, the appropriate vehicle is the course evaluation. If you have a disagreement
with an instructor or a teaching assistant, we strongly encourage you to try to resolve
the dispute with him or her directly. The grievance procedure is designed for situations
where neither of these channels is appropriate.

If you wish to le a grievance, you should go to room 7238 Social Science and request
a Course Comment Sheet. When completing the comment sheet, you will need to pro-
vide a detailed statement that describes what aspects of the course you nd unsatis-
factory. You will need to sign the sheet and provide your student identi cation number,
your address, and a phone where you can be reached. The Department plans to inves-
tigate comments fully and will respond in writing to complaints.

Your name, address, phone number, and student ID number will not be revealed to the
instructor or teaching assistant involved and will be treated as con dential. The De-
partment needs this information, because it may become necessary for a commenting
student to have a meeting with the department chair or a nominee to gather additional
information. A name and address are necessary for providing a written response.
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 Misconduct Statement

Academic integrity is critical to maintaining fair and knowledge based learning at UW-
Madison. Academic dishonesty is a serious violation: it undermines the bonds of trust
and honesty between members of our academic community, degrades the value of
your degree, and defrauds those who may eventually depend upon your knowledge
and integrity.

Examples of academic misconduct include, but are not limited to: cheating on an ex-
amination (copying from another student's paper, referring to materials on the exam
other than those explicitly permitted, continuing to work on an exam after the time has
expired, turning in an exam for regrading after making changes to the exam), copying
the homework of someone else, submitting for credit work done by someone else,
stealing examinations or course materials, tampering with the grade records or with
another student's work, or knowingly and intentionally assisting another student in any
of the above. Students are reminded that online sources, including anonymous or unat-
tributed ones like Wikipedia, still need to be cited like any other source; and copying
from any source without attribution is considered plagiarism.

The Dept. of Economics will deal with these o enses harshly following UWS14 proce-
dures (http://students.wisc.edu/saja/misconduct/UWS14.html):

1. The penalty for misconduct in most cases will be removal from the course and a
failing grade,

2. The department will inform the Dean of Students as required and additional sanc-
tions may be applied.

3. The department will keep an internal record of misconduct incidents. This informa-
tion will be made available to teaching faculty writing recommendation letters and to
admission o ces of the School of Business and Engineering.

If you think you see incidents of misconduct, you should tell your instructor about
them, in which case they will take appropriate action and protect your identity. You
could also choose to contact our administrator (Tammy Herbst-Koel: [email protected]
du) and your identity will be kept con dential.
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