Most of Chapter 6 Is Concerned with Specification Bias

question 3

Essay

Most of Chapter 6 is concerned with specification bias.
(a) What exactly is specification bias?
(b) What is known to cause specification bias?
(c) Are unbiased estimates always better than biased estimates? Why or why not?
(d) What's the best way to avoid specification bias?

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Definitions:

Degrees of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution or to determine the distribution's parameter.

Chi-Squared Test Statistic

A value used in chi-squared tests to evaluate how likely observed frequencies of events are to occur under a specific hypothetical distribution.

Expected Value

In probability theory, the sum of all possible outcomes of a particular situation, each multiplied by its likelihood of happening.

Sample Size

Sample size refers to the number of observations or data points collected in a sample from a population for the purpose of statistical analysis.