The data set must contain a minimum of 3 variables, (one dependent
variable and at least 2 right hand side variables to be added to a constant
term). You should concentrate on estimating a multiple (rather than simple)
You should have a minimum of 50 observations in your regressions.
Anything less will be penalised heavily.
The model should be a causal one, (ie the right hand side variables should
explain the dependent variable, not the other way round). This also means, for
example, that you should not estimate identities like a national accounts
model of the form Y=C+I+G+(X-M). This is an accounting identity and so the
coefficients shouldn’t be anything other than one, barring measurement error).
The econometric results should include a thorough statistical evaluation using
the full range of (relevant) diagnostic tests highlighted during the course. Do
not use tests just for the sake of it. There are no marks to be gained by doing
countless irrelevant tests. Only use tests that are relevant to the type of data
and economic relationship you are trying to estimate. (For the purposes of the
project assume that a sample of 50 or more observations is enough to make
any asymptotic tests valid).