Econometrics is a branch of economics which applies computer science, statistical methods and mathematics to conduct a quantitative analysis of data. In simple terms, econometrics is applied by economists to analyse a large volume of data for the purpose of generating simple relationships between them. The term econometrics was originally used in the year 1910 by Ciompa Pawel. However, its modern use is attributed to Frisch Ragnar. The basic model that students use in an econometrics assignment helps students in learning linear regression. Here, different variables are separately analysed and compared.
Mostly, econometrics applies statistical theory in its analysis. Statistical theory is useful to economists because it is suitable for identifying the most suitable estimators that are efficient, unbiased and consistent. When it comes to the model, econometrics mostly use statistical model because it is most appropriate in the study of econometrics assignment problems. However, despite its usefulness, econometrics has been criticised on several occasions. Some scholars have faulted econometrics for failing to adequately describe economic reality because of its overreliance on observation rather than experimental data.
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