Selection Bias

Definition

  • An error made in statistical analysis whereby non-random data is injected into a given dataset. Due to flaws in the sample selection process, biased or flawed data in a statistical analysis can produce inaccurate results. Economists, statisticians, and actuaries attempt to avoid selection bias when conducting their work.

Synonyms
favouritism, choice, inclination

Related Terms and Acronyms

  • Actuarial Table Definition,
    • A table used in actuarial science that outlines the statistical probability that an individual of a specific age and sex will die within a year.
  • Concealment Definition,
    • The act of lying or omitting information when applying for insurance coverage.
  • Self-Selection Bias Definition,
    • A selection bias that occurs when individuals join a sample group voluntarily.
  • Survival Analysis Definition,
    • A statistical analysis of how likely someone or something will survive to a set date.
  • Ultimate Mortality Table Definition,
    • A mortality table that does not include information from people who have been approved for life insurance recently.
  • Underlying Mortality Assumption Definition,
    • A measurement of death rates that is used to estimate pension obligations and insurance premiums.
  • Unsolicited Application Definition,
    • An application for insurance made directly by an individual as opposed to an application made by a broker or agent.
  • Yearly Probability of Dying Definition,
    • The likelihood that an individual of a certain age and gender will die within a year.
  • Yearly Probability of Living Definition,
    • The likelihood that an individual of a certain age and gender will still be alive after a year has passed.
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