Statistical model specification
Part of the process of building a statistical model / From Wikipedia, the free encyclopedia
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In statistics, model specification is part of the process of building a statistical model: specification consists of selecting an appropriate functional form for the model and choosing which variables to include. For example, given personal income together with years of schooling
and on-the-job experience
, we might specify a functional relationship
as follows:[1]
where is the unexplained error term that is supposed to comprise independent and identically distributed Gaussian variables.
The statistician Sir David Cox has said, "How [the] translation from subject-matter problem to statistical model is done is often the most critical part of an analysis".[2]