Delta method

The Delta method is a statistical technique used to estimate how changes in one variable affect another, particularly when dealing with complex functions. It uses calculus to approximate the behavior of estimates and their variances, making it easier to understand relationships in data. For example, if we know how a small change in income affects spending, the Delta method helps us predict the impact of larger income shifts. Essentially, it allows researchers and analysts to make informed predictions about one variable based on changes in another, especially when the relationships aren't straightforward.