Model Specification

Model specification is the process of defining the structure of a statistical model by selecting which variables (or factors) to include and how they relate to each other. It ensures the model accurately captures the underlying relationships in data, enabling meaningful analysis and predictions. Think of it as setting the blueprint for understanding how different pieces of information fit together to explain a phenomenon. Proper specification is vital; too simple, and important details are missed; too complex, and the model can become confusing or unreliable.