Statistical Error: Third Variable

Definition: In a cause and effect relationship, a third variable is a confounding variable that also influences the Effect. That is to say, your independent variable is the Cause, and your dependent variable is the effect. A Third variable is a confounding variable that also influences your dependent variable.

1. Provide a Human Resource decision that has to be made as an example to the statistical error of a third variable. Definition is provided above, give a scenario.

2. What are the two variables being considered?

3. What is the proposed relationship between these variables (the possible error)?

4. How might the relationship be explained differently?

Criteria:

A decision is named. An actual decision must be named in the example.

• The decision is relevant to HR. The decision should be relevant to one of the functions of HR (recruiting, selection, performance management, learning & development, compensation, safety, laws & regulations, etc.) or the overall HR strategy.
• The variables have an possible cause and effect relationship.
• The variables named should have a relationship that could possibly be seen as cause and effect.
• This criterion is linked to a Learning Outcome. The proposed relationship represents the error.
• The proposed relationship between the variables should represent the error discussed.
• The explanation of a different relationship is reasonable.
• The explanation for how the relationship could be different should be address the error and be clearly stated.