rwilson4
Joined 8 years ago
Joined 8 years ago
In the scenario you're describing, this other factor drowns out any influence the treatment has on the outcome. You'll struggle to get a statistically significant result (low power) and the confidence interval on the treatment effect will include 0. This too can be a valuable finding: sometimes the answer is that the treatment is not particularly effective.
In English, a confounder is any factor that distorts an observation. (My dictionary defines it as throwing into confusion or disarray.)
In causal inference, a confounder is a factor that is correlated with both treatment and outcome. If the treatment is randomly assigned, by construction it is independent of all other factors. This, there can be no confounders.
Your example is about observed occurrences of imbalance, but the technical definition is about probabilities. Observed imbalances can still skew inference, but that causes high variance (or low precision). It doesn't cause bias (or affect accuracy).
Adjusting for observed imbalances can reduce variance, but in some circumstances can actually cause bias.
In the example you gave, a test is going to have very low power because of the important factor with huge variance. If that factor is observed, you can create pairs of units with that factor identical within the pair, then randomly assign treatment to one unit in each pair.
"A naive student of Bayesian inference might claim that because all inference is conditional on the observed data, it makes no difference how those data were collected. This misplaced appeal to the likelihood principle would assert that given (1) a fixed model (including the prior distribution) for the underlying data and (2) fixed observed values of the data, Bayesian inference is determined regardless of the design for the collection of the data. Under this view there would be no formal role for randomization in either sample surveys or experiments."
"The notion that the method of data collection is irrelevant to Bayesian analysis can be dispelled by the simplest of examples. Suppose for instance that we, the authors, give you, the reader, a collection of the outcomes of ten rolls of a die and all are 6's. Certainly your attitude toward the nature of the die after analyzing these data would be different if we told you (i) these were the only rolls we performed, versus (ii) we rolled the die 60 times but decided to report only the 6's, versus (iii) we decided in advance that we were going to report honestly that ten 6's appeared but would conceal how many rolls it took, and we had to wait 500 rolls to attain that result."
It boils down to what properties you want your analysis to have. Cox and Hinkley's "Theoretical Statistics" has a great discussion (section 2.4). Basically, you might want your analysis to have a certain kind of internal consistency. But you might also want your analysis to be replicable either by yourself or by another researcher. Those both seem like pretty important things! But there are edge cases (like the early peeking example) where you can't have it both ways. So you have to pick which one you want, and use the corresponding methods.
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