Econometrics is the application of statistical methods to economic data and is described as the branch of economics that aims to give empirical content to economic relations. More precisely, it is "the quantitative analysis of actual economic phenomena based on the concurrent development of theory and observation, related by appropriate methods of inference". An introductory economics textbook describes econometrics as allowing economists "to sift through mountains of data to extract simple relationships". The first known use of the term "econometrics" (in cognate form) was by Polish economist Paweł Ciompa in 1910. Jan Tinbergen is considered by many to be one of the founding fathers of econometrics. Ragnar Frisch is credited with coining the term in the sense in which it is used today. 

The basic tool for econometrics is the multiple linear regression model. Econometric theory uses statistical theory and mathematical statistics to evaluate and develop econometric methods. Econometricians try to find estimators that have desirable statistical properties including unbiasedness, efficiency, and consistency. "Applied econometrics" uses theoretical econometrics and real-world data for assessing economic theories, developing econometric models, analyzing economic history, and forecasting. 

The basic tool for econometrics is the multiple linear regression model. In modern econometrics, other statistical tools are frequently used, but linear regression is still the most frequently used starting point for an analysis. Estimating a linear regression on two variables can be visualized as fitting a line through data points representing paired values of the independent and dependent variables.
what method is being discussed?
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what does it allow economists to do?
when was the word first used?
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who is he?
who made up the term that we now use?
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what is the most important tool for econometrics?
what does this theory use?
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of what?
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Econometrics
Econometrics
the application of statistical methods to economic data
the application of statistical methods to economic data
give empirical content to economic relations
give empirical content to economic relations
the quantitative analysis of actual economic phenomena
the quantitative analysis of actual economic phenomena
the concurrent development of theory and observation, related by appropriate methods of inference
the concurrent development of theory and observation, related by appropriate methods of inference
sift through mountains of data to extract simple relationships
 sift through mountains of data to extract simple relationships
1910
1910
Paweł Ciompa
Paweł Ciompa
a Polish economist
Polish economist
Ragnar Frisch
Ragnar Frisch
Jan Tinbergen
Jan Tinbergen
considered by many to be one of the founding fathers
considered by many to be one of the founding fathers
the multiple linear regression model
the multiple linear regression model
statistical theory and mathematical statistics
statistical theory and mathematical statistics
to evaluate and develop econometric methods
to evaluate and develop econometric methods
linear regression
linear regression
unknown
unknown
as fitting a line through data points representing paired values
as fitting a line through data points representing paired values
the independent and dependent variables
the independent and dependent variables
to find estimators that have desirable statistical properties
to find estimators that have desirable statistical properties