Omitted-variable bias
Type of statistical bias / From Wikipedia, the free encyclopedia
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In statistics, omitted-variable bias (OVB) occurs when a statistical model leaves out one or more relevant variables. The bias results in the model attributing the effect of the missing variables to those that were included.
This article includes a list of general references, but it lacks sufficient corresponding inline citations. (July 2010) |
More specifically, OVB is the bias that appears in the estimates of parameters in a regression analysis, when the assumed specification is incorrect in that it omits an independent variable that is a determinant of the dependent variable and correlated with one or more of the included independent variables.