What process involves determining what data to include in a model and in what format?

The process of determining what data to include in a model and in what format is known as model specification. This step is critical because it defines the framework for the model and establishes the relationships that will be analyzed. In model specification, you determine not only the types of variables that will be included, such as independent and dependent variables but also how these variables will be measured and represented within the model. This can involve decisions about the form of data (e.g., numerical, categorical) and how to treat various data characteristics (e.g., linear vs. non-linear relationships).

While data collection, data analysis, and model evaluation are all important components of the modeling process, they serve different purposes. Data collection involves gathering the necessary information before any analysis can occur. Data analysis refers to the techniques used to interpret and manipulate data after it has been collected and specified in a model. Model evaluation focuses on assessing the performance, accuracy, and applicability of the model after it has been built and run. Model specification lays the foundational work that directly influences the validity and reliability of the subsequent analyses and evaluations.