How does collecting more/alternative data put less burden on the modeling choices of the analyst?
A) By collecting more data, an analyst can completely avoid characterizing a determining function.
B) By collecting more data, an analyst can avoid heteroscedasticity.
C) By collecting more data, an analyst can avoid having to make functional form choices to fill in data gaps/extent of the data.
D) By collecting more data, an analyst can implement a fixed effects design.

Question

Quizplus · Accepted Answer

By collecting more data, an analyst can have a larger sample size, which can reduce the impact of outliers and increase the power of statistical tests. This can also reduce the need to make assumptions about the functional form of the relationship between variables, as there may be enough data to accurately estimate the shape of the relationship. Additionally, with more data, the analyst may be able to fill in data gaps or extend the range of the data without having to make functional form choices. Therefore, collecting more/alternative data can reduce the burden on the modeling choices of the analyst.

How Does Collecting More/alternative Data Put Less Burden on the Modeling