Econometrics is a subject, or rather is a subset of mainstream economics that generally deals with the mathematical methods in Economics, so can be visible in the name itself. In other words, Econometrics is a scientific method of applying a mathematical formula to an economic model in order to justify its validity and viability The role of Econometrics is vital as it serves quite a lot of purposes for a business. It helps in developing new theories as well as test the viability of the existing theories. It is also vital in forecasting future economic trends and therefore contributing to the company’s profit.
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