There is a bit of art and experience to model building. You need to build a model to answer your research question but how do you build a statistical model when there are no instructions in the box?
The other big assumption, which is harder to see or test, is that there is no specification error. The assumption of linearity is part of this, but it’s actually a bigger assumption.
What is this assumption of no specification error? [Read more…] about What Is Specification Error in Statistical Models?