January, 20 2018 David Steinberg Yang et al. consider the application of predictive data mining techniques in Information Systems research. Their focus is on the impact of data errors and misclassification on the subsequent data analysis by econometric models. Typically, data mining methods are first used to generate new variables (e.g., text sentiment), which are added into subsequent econometric models as independent regressors. However, because prediction is almost always imperfect, variables generated from the first
