A continuation of Econometrics I. The course explores more advanced topics in single and multivariate regression analysis, making use of matrix algebra. Empirical studies of econometric relationships make use of econometric software packages, such as EViews, STATA and others.

CILO-1: Apply econometric techniques to analyze data sets in economics, business, and finance, using statistical software to provide the results and then interpreting and commenting on these results. CILO-2: Use the matrix approach to Ordinary Least Square, including estimating and interpreting parameters, and how to test hypotheses using matrix algebra. CILO-3: Identify and correct for potential issues such as heteroscedasticity, autocorrelation, and misspecification in regression models, and explain the consequences of failing to address these issues. CILO-4: Analyze financial time series data, including testing for unit roots and cointegration, and using simple forecasting models such as seasonal indices and Autoregressive Integrated Moving Average (i.e. ARIMA) models.