Foundation of Probability Theory Random Experiments Random Experiments Recall fundamental axioms of econometrics: Axiom A:An economic system can be viewed as a random experiment governed by some probability law. Axiom B:Any economic phenomenon (often in form of data)can be viewed as an out-come of this random experiment.The random experiment is called a "data generating process". Foundation of Probability Theory Introduction to Statistics and Econometrics May22,2019 3/248Foundation of Probability Theory Introduction to Statistics and Econometrics May 22, 2019 3/248 Recall fundamental axioms of econometrics: ● Axiom A: An economic system can be viewed as a random experiment governed by some probability law. ● Axiom B: Any economic phenomenon (often in form of data) can be viewed as an out-come of this random experiment. The random experiment is called a “data generating process". Random Experiments Foundation of Probability Theory Random Experiments