Econometrics is a branch of economics that uses statistical methods and mathematical models to analyze and interpret economic data. It combines economic theory, mathematics, and statistical techniques to estimate and test hypotheses about economic relationships. Econometric analysis is used to understand the behavior of individuals, firms, markets, and economies as a whole, as well as to make forecasts and policy recommendations. Econometrics is widely used in academic research, policy analysis, business decision-making, and financial analysis.