ECO105 Final

Measurement Validity

The extent to which a measure accurately reflects the concept it is intended to measure.

Confounding Variables

Factors that affect life expectancy but aren’t accounted for in health expenditure data.

Demographic Differences

Variations in age or race across countries that influence life expectancy, unrelated to healthcare spending.

Natural Experiment

A situation in which natural circumstances provide an experimental-like setup to test hypotheses.

Difference-in-Differences (DiD) Design

A study design that compares outcomes over time between a treatment group and a control group.

Confidence Interval

A range of values derived from sample data that is likely to contain the population parameter.

Hypothesis Testing

A statistical method that uses sample data to evaluate a hypothesis about a population parameter.

Correlation Coefficient

A statistical index ranging from -1 to 1 that indicates the direction and strength of a relationship between two variables.

Regression Line

An equation that describes the relationship between a dependent variable and one or more independent variables.

McNemar's Test

A statistical test used to compare paired proportions.