# Chapter 17: Econometric Thinking and Research Design
# Fundamentals of Python for Financial Econometrics - Econometric Thinking and Research Design
# Dataset: Ceteris Lab teaching sample

# Chapter 17: Econometric Thinking and Research Design
# **Economic question:** What exactly are we trying to learn from economic data?
#
# A regression coefficient can summarize an association without identifying a causal effect.

# %% Cell 2
import numpy as np
import statsmodels.api as sm
rng = np.random.default_rng(17)
x = rng.normal(size=300)
y = 1 + 0.8*x + rng.normal(size=300)
model = sm.OLS(y, sm.add_constant(x)).fit()
print(model.params)

# Interpretation checklist
# - State the unit of observation and units of every variable.
# - Separate association, prediction, and causation.
# - Report magnitude and uncertainty.
# - Identify the most important threat to validity.