## What is Omitted Variable Bias?

Omitted variable bias (OVB) occurs when a regression model excludes a relevant variable. The absence of these critical variables can skew the estimated relationships between variables in the model, potentially leading to erroneous interpretations. This bias can exaggerate, mask, or entirely flip the direction of the estimated relationship between an independent and dependent variable. [Read more…] about Omitted Variable Bias: Definition, Avoiding & Example