What is the potential disadvantage of using listwise deletion for handling missing data?

  • It causes overfitting
  • It discards valuable data
  • It introduces random noise
  • It leads to multicollinearity
The potential disadvantage of using listwise deletion for handling missing data is that it can discard valuable data. If the missing values are not completely random, discarding the entire observation might lead to biased or incorrect results because it might exclude certain types of observations.
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