Applied Quantitative Methods

Code:

2MEAE04

Acronym:

MQA

Keywords
Classification	Keyword
OFICIAL	Mathematics

Instance: 2024/2025 - 1S

Active?	Yes
Responsible unit:	Agrupamento Científico de Matemática e Sistemas de Informação
Course/CS Responsible:	Master in Economics and Business Administration

Cycles of Study/Courses

Acronym	No. of Students	Study Plan	Curricular Years	Credits UCN	Credits ECTS	Contact hours	Total Time
EAE	51	Official Syllabus after 2021-2022	1	-	6	42	162

Teaching language

Suitable for English-speaking students

Objectives

This course main goal is to show how quantitative methods can be applied to the analysis of management and economic problems and to the decision making process that leads to the best solution available. In a more practical and close to date framework, this course can also assist students to better appreciate published scientific research, and conveys the basic training for helping them to prepare the empirical part of their dissertations.

Learning outcomes and competences

By the end of this course, students are expected to be able to

i- Produce, estimate and interpret statistically and theoretically valid econometric models applied to management and economic contexts;

ii- Comprehend, and critically assess research articles in scientific journals;

iii- Appropriate use of the econometric software made available during the course.

Working method

Presencial

Pre-requirements (prior knowledge) and co-requirements (common knowledge)

N.A.

Program

Course Outline:

 

1. Classic Linear Regression Model (CLRM)

Simple regression model analysis

OLS estimators’ properties under the classic hypothesis

Multiple regression model analysis

Alternative linear models and variable transformation

Hypothesis testing for single coefficients and groups of coefficients

2. Binary (dummy) variables

Intercept, slope and interactive dummy variables

The base-class and the dummy variable ‘trap’ 

Economic interpretation of the coefficients of dummy variables

Structural break tests with dummy variables.

3. Relaxing the classical hypothesis of the CLRM

Heteroscedasticity: detection, problems and solutions

Serial correlation: detection, problems and solutions

Multicolinearity: detection, problems and solutions

Specification errors: “detection”, problems and solutions

4. Complementary Models

LOGIT/PROBIT Models

Time series models

 

Mandatory literature

Oliveira, Manuel José Mendes de; Econometria. ISBN: 978-972-592-326-9
Gujarati, Damodar N; Basic econometrics. ISBN: 9780071276252

Complementary Bibliography

Dougherty, Christopher ; Introduction to Econometrics, Oxford University Press, 2007
Wooldridge Jeffrey M.; Econometric analysis of cross section and panel data. ISBN: 0-262-23219-7

Teaching methods and learning activities

Theoretical presentation of the matter/issue under concern, followed by practical examples for the students to solve, preferably with actual data on the subjects addressed.

Software

EViews
Software R

Evaluation Type

Distributed evaluation without final exam

Assessment Components

Designation	Weight (%)
Teste	100,00
Total:	100,00

Amount of time allocated to each course unit

Designation	Time (hours)
Estudo autónomo	40,00
Frequência das aulas	36,00
Total:	76,00

Eligibility for exams

The successful student has to obtain at least 9.5/20 marks for the weighted average of two tests and, in none of them, a mark smaller than 6/20 values. The first test takes place in November and the second one in the day of the exam, in January.

The successful student can also choose to just attend the January exam and obtain there, at least, 9.5/20 marks.

Not being able to do so, the student can still pass the discipline by attending the resit exam (also in January) and obtaining, at least, 9.5/20 marks.

 

Calculation formula of final grade

“distributed evaluation” with two tests (T1, T2)

Final score = 0.5*T1+0.5*T2.

Examinations or Special Assignments

NA

Internship work/project

NA

Special assessment (TE, DA, ...)

General regulations apply

Classification improvement

General regulations apply