e.g, you want to know some features of US stock market, so you collect latest data of US stock market. but the data you collected only involves the firms currently listed (survivors). Some firms may had been listed on U.S. market for but delisted the year before may have bigger impact. But as they are not survived in your sample, your results are only based on the survivors and didn't capture those effects. Thus you results are biased. Hope this's helpful
@charronfamilyconnect
e.g, you want to know some features of US stock market, so you collect latest data of US stock market. but the data you collected only involves the firms currently listed (survivors). Some firms may had been listed on U.S. market for but delisted the year before may have bigger impact. But as they are not survived in your sample, your results are only based on the survivors and didn't capture those effects. Thus you results are biased. Hope this's helpful
josephzhou2001 3 months ago
anyone heard of survivorship bias?
charronfamilyconnect 4 months ago
good info.
baldwinandbeacon 8 months ago