Introduction to micro economics technote
This presentation is the property of its rightful owner.
Sponsored Links
1 / 7

Introduction to Micro-economics Technote PowerPoint PPT Presentation


  • 33 Views
  • Uploaded on
  • Presentation posted in: General

Introduction to Micro-economics Technote. Creating a distribution; calculating a probability. Social science needs to add parts (individuals, firms, etc.) to create a whole. Market demand (private goods) adds horizontally Adding and summarising a group is a basic tool for all research

Download Presentation

Introduction to Micro-economics Technote

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Introduction to micro economics technote

Introduction to Micro-economicsTechnote

Creating a distribution; calculating a probability


Social science needs to add parts individuals firms etc to create a whole

Social science needs to add parts (individuals, firms, etc.) to create a whole

  • Market demand (private goods) adds horizontally

  • Adding and summarising a group is a basic tool for all research

  • We create a distribution of a group attribute (age) by counting members in categories

  • We can use a small sample to infer features of a population, provided the sample has important properties.


Market demand adds individual demands

MARKET DEMAND ADDS INDIVIDUAL DEMANDS

Market demand curve


Distribution of class ages

Distribution of Class Ages

  • Compute your age according to the hand out

  • Plotting the age in groups generates a distribution.

  • The wider the categories, the higher the count in each category, but the cruder the distribution

  • The narrower the categories, the sparser the count for a give group size.

  • Key attributes of any distribution are the mean (average) and variance (spread).

  • The graph defines a histogram


From distribution to probability

From distribution to probability

  • Define the area under the histogram/distribution as 1

  • This allows one to answer questions such as

    • What is the probability that some one is more than 19 in this class?

    • What is the probability that someone has an age between 16.75 and 17.50 years


Normal distribution

Normal Distribution

Small variance

Large variance


The square root of the variance is the standard deviation

The square root of the variance is the standard deviation


  • Login