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Econometrics: What is nominal data?

With nominal data, each category is mutually exclusive to the next and there is no crossover between the respective categories. Examples of such nominal scale variables include such factors as gender, employment status or college graduate. This is not a hugely informative measure as a category is simply selected and detailed information is lacking. A useful …

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What is a correlation coefficient?

The correlation coefficient is used in economics and throughout econometrics to measure the strength of a relationship between two given variables. This econometric measure also gives an indication of whether the two variables are positively related or negatively related to each other. The correlation coefficient is measured between -1 to +1. For example if we …

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