Econometrics
Correlation
A statistical description of how variables move together, not proof that one causes the other.
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Using data to test ideas—and knowing what the evidence can tell us.
What can the data actually prove?
Start with a concept below, or follow a connected learning path. Definitions are starting points: assumptions and evidence determine how an idea applies.
Econometrics
Causation
A change in one factor produces a change in another, assessed against what would have happened otherwise.
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Regression
A method for modelling how an outcome varies with one or more explanatory variables.
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Selection bias
Distortion arising when the observed sample or treatment groups differ systematically in relevant ways.
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Omitted variable bias
Bias in a regression coefficient when an omitted relevant factor is correlated with an included explanatory variable.
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Confidence interval
An interval produced by a method with a stated long-run coverage rate under its assumptions.
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Randomised experiment
A study assigning treatment by chance to make groups comparable in expectation.
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External validity
The extent to which a study’s findings apply to other people, settings or times.
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