1.3 THE METHODOLOGY OF ECONOMETRICS e Procedures of econometrics analysis 3. Specifying the Mathematical Model Plot the data in a scatter diagram, or scatter gram, draw a straight line through the scatter points and write the relationship be p etween the two variables by the mathematical model B BX B, B, the parameters of the liner function B, the intercept, the value ofy when Xis zero B, the slope, the rate or change in y for a unit change in X.1.3 THE METHODOLOGY OF ECONOMETRICS Procedures of econometrics analysis 3. Specifying the Mathematical Model Plot the data in a scatter diagram, or scatter gram, draw a straight line through the scatter points and write the relationship between the two variables by the mathematical model: B1 , B2 the parameters of the liner function. B1 the intercept, the value of Y when X is zero; B2 the slope, the rate or change in Y for a unit change in X. Yi = B1 + B2 Xi