Propensity Score Matching Diagram

Propensity score matching is a new way to predict marketing decisions.

Propensity score matching diagram.

Psm attempts to reduce the bias due to confounding variables that could be found in an estimate of the treatment effect. As discussed in my previous blog post propensity score matching is a powerful technique for reducing a set of confounding variables to a single propensity score so an analyst can easily eliminate all confounding bias in that post i described a scenario in which a marketer may struggle to identify the causal effect of a particular campaign and discussed a rigorous causal inference technique. Using propensity score matching. An alternative method of controlling for observed variables is propensity score matching.

Say we are interested in the effects of smoking on health. Propensity score matching is a statistical matching technique that attempts to estimate the effect of a treatment e g intervention by accounting for the factors that predict whether an individual would be eligble for receiving the treatment the wikipedia page provides a good example setting. The score is a predicted probability that students receive a treatment given their observed characteristics. Researchers first estimate a propensity score for each student or other unit in the sample rosenbaum and rubin 1983.

Logistical regression isn t. Propensity scores are usually computed using logistic regression with group treatment status regressed on observed baseline characteristics including age gender and behaviors of relevance to the research. Simple and clear introduction to psa with worked example from social epidemiology. Jm oakes and js kaufman jossey bass san francisco ca.

Propensity score matching for social epidemiology in methods in social epidemiology eds.