Prof. Francesco Decarolis
Department of Economics
University of Wisconsin-Madison
Spring 2010
Syllabus - Economics 310
Course Description
Economics 310 is a semester long course in probability and statistical inference. The first
part of the course concerns probability theory which is the basic mathematics of uncertainty.
Applications of the theory to various problems in economics will be discussed.
The second part of the course focuses on statistical inference which provides the basis for the
rigorous analysis and interpretation of numerical data. This part of the course will be spent
learning how the basic tools of statistical inference work and how to use them, what information
statistical testing does and does not provide, and how to be sensitive to statistical abuse and
misrepresentation.
Prerequisites: One introductory econ course and Math 221 or 211.
Time & place
TuTh 2:30PM - 3:45PM in Room SOC SCI 6104.
Reading Materials
The textbook for the course is: G. Keller. Statistics for Management and Economics. 8th
ed. Belmont, CA: Duxbury– Thomson–Brooks/Cole, 2008. Notice that for this course it is
required that you buy an Aplia access card for the Keller’s book. Hence my suggestion is to buy
through Aplia also the book itself (either the text or the e-book). See the instructions to obtain
your access card at the end of this syllabus.
The other main source of readings is the forthcoming book by W. H. Sandholm and B. A.
Saraniti. Vital Statistics: Probability and Statistics for Economic and Business Decisions. To be
published by Addison-Wesley. It can be purchased in the Social Science Copy Center for the
price of making the copy.
Problem Sets
Most of the problem sets will be assigned through the Aplia web site. The worst grade in the
problem sets will not be counted for your final grade.
There will be one extra problem set based on Stata (statistical software).
Exams
There will be a midterm covering probability and a final that emphasizes statistics.
Grading
Problem sets will count for 20% of the course grade, the Stata problem set for 10%, the
midterm for 30% and the final for 40%.
Contact information
My office is 7426 Social Science. You can reach me by e-mail at fdc@ssc.wisc.edu or by
phone at 263-3867. My office hours are on Tuesdays from 4:00 to 6:00 or by appointment.
The course website is linked here: http://www.ssc.wisc.edu/~fdc/decarolis-courses.htm
TA Information
Tas for this course will be assigned soon and their contacts will be on the course website.
Course Outline
1. Introduction:
1.1 Basic terminology and ideas (K 1-2-3, SS 1)
1.2 Descriptive statistics (K 4)
2. Probability:
2.1 Probability basics (K 6, SS 1-2)
2.2 Random variables & discrete distributions (K 7, SS 3-4-6)
2.3 Continuous distributions (K 8, SS 7)
2.4 Sampling distributions, law of large numbers and central limit theorem (K 9, SS 9)
3. Inference:
3.1 Estimation basics (K 10-12)
3.2 Hypothesis testing (K 11)
3.3 Comparing two populations (K 13) – Introduction to Stata (statistical software)
3.4 Analysis of Variance (K 14)
3.5 Regression analysis (K 16-17) – If time permits
Note: K stands for chapters in Keller while SS for chapters in SS. You are expected to study the
content in K. I will tell in class which specific topics you have to study in SS.
Class Meetings
Week of
Tuesday
Thursday
January 18
section 1.1/1.2
section 1.2
January 25
section 2.1
February 8
section 2.1
ps 1 due
section 2.2
ps 2 due
section 2.2
February 15
section 2.3
February 22
section 2.3
March 1
section 2.4
March 8
March 15
Review
ps 5 due
section 3.1
March 22
section 3.1
April 5
section 3.2
April 12
section 3.3
April 19
section 3.3
April 26
section 3.4
May 3
section 3.5
February 1
Midterm:
Thursday, March 8th, 2:30 PM
Final:
Saturday, May 15th, 7:45 AM
section 2.2
section 2.3
ps 3 due
section 2.3
section 2.4
ps 4 due
section 2.4
midterm
section 3.1
section 3.2
ps 6 due
section 3.3
ps 7 due
section 3.3
stata ps
section 3.4
ps 8 due
section 3.5
ps 9 due
review
Student Registration and Payment Instructions
Course Name: Decarolis, ECON 310 (Keller 8e) Spring 2010
Start Date: 01/19/2010
Instructor: Francesco Decarolis
Course Key: YNFC-2AL3-WS75
You can begin working on your homework as soon as you register!
• In this course, you will use a textbook and Aplia's website.
• In most cases, you can save money if you buy Aplia and your textbook together. See payment
options below.
• You will have access to a digital version of your textbook using Aplia.
Registration
If you have never used Aplia before...
1. Connect to http://www.aplia.com.
2. Click the Create a New Account link and choose Student Account. You will then enter your
course key: YNFC-2AL3-WS75. Continue following the instructions to complete your registration.
If you have used Aplia before...
1. Connect to http://www.aplia.com.
2. Sign in with your usual e-mail address and password and enter your Course Key when prompted:
YNFC-2AL3-WS75. If you are not prompted for a new Course Key, click the Enter Course Key
button to enroll in a new Aplia course. Enter your Course Key when you are prompted.
* You will have different payment options after you register for your course. If you choose to pay later,
you can use Aplia without paying until 11:59 PM on 02/08/2010.
Payment
Option 1: Digital Textbook with Aplia Access
• From Aplia: Purchase access to your course from Aplia's website for $80.00 USD.
• From Bookstore: Purchase an Aplia Access Card from your campus bookstore.
Option 2: Physical Textbook with Aplia Access (also includes digital textbook)
• From Aplia: Purchase access to your course for $80.00 USD and a physical book for $90.00
USD from Aplia's website.
• From Bookstore: Purchase an Aplia Access Card and a physical book together as a bundle
from your campus bookstore.
* If you purchased an Aplia Access Card from a bookstore, enter the Access Card's payment code on
Aplia's website as payment for your Aplia course.
* You will have access to your digital textbook up until the end of this course.