A set of tools to learn about features of an outcome variable where this outcome is a random variable.
(Paul Grootendorst, University of Toronto, PPG2010)
Econometrics use sample data and an estimator, which is simply a formula involving the sample data, to estimate features of the probability distribution/density of chosen outcome variables. Econometrics allow us to:
1.) Estimate features of the unconditional distribution of random variables.
2.) Quantify the relationship between outcome variables and various explanatory variables.
3.) Distinguish between competing hypotheses
4.) Forecast the probability of events occurring in the future