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, inclination, choice
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.
