> For the complete documentation index, see [llms.txt](https://vu-minor-applied-econometrics.gitbook.io/preparation-minor-applied-econometrics/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://vu-minor-applied-econometrics.gitbook.io/preparation-minor-applied-econometrics/important-concepts.md). # Important concepts It is generally difficult to define a complete profile in terms of background knowledge required for this minor. The teachers in this program have collected a list of topics in **statistics,** which they identify as crucial for a successful start into the first courses: * Random variables and realizations * Probability distribution functions (PDF) and cumulative distribution functions (CDF) * Moments: mean, variance, skewness, kurtosis * Quantiles of a distribution * Covariance, correlation and dependence * Multivariate random variables (covariance and correlation matrix) * Conditioning: conditional distributions, conditional mean, variance and covariance * Law of total expectation * Estimation: ordinary least squares, maximum likelihood, method of moments * Inference: hypothesis testing, *p*-values*,* confidence intervals * Asymptotics: convergence in probability, convergence in distribution, law of large numbers, central limit theorem, asymptotic normality It is highly advisable that you are familiar with (most of) them as background knowledge. The following pages explain intuitively why these concepts are important to get a smooth start into your first econometrics courses. For a formal treatment of the concepts, you can find appropriate references in the [Literature](/preparation-minor-applied-econometrics/literature.md) section. You might also want to visit [the website of dr. K. Moussa](https://www.k-moussa.com/teaching), who is teaching in the minor programme. He has created notes on programming, probability theory and statistics that are tailor-made for the courses in period 1 of the minor. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://vu-minor-applied-econometrics.gitbook.io/preparation-minor-applied-econometrics/important-concepts.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.