What are Clustered Standard Errors? (Definition & Example)
Defining Clustered Standard Errors: Addressing Non-Independence Clustered standard errors represent a necessary methodological adjustment in regression analysis when researchers encounter data where observations are not statistically independent. This lack of independence, or correlation, frequently arises because data points are naturally grouped or “clustered” within identifiable units. Recognizing and correcting for this internal dependence is paramount […]
What are Clustered Standard Errors? (Definition & Example) Read More »