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Suppose I have groups (A, B, ...) and in each group I have several inputs and outputs (of the same type). I want to model each output from the inputs, in that case, the group variable is known, but I choose not to include it in the model.

I would intuitively call this group variable a "latent variable", but that could be confusing as a latent variable is usually unknown and taken into account.

Is there a name for a variable underlying the data but not included in a model?

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    $\begingroup$ Ignored? ??????? $\endgroup$ Commented Sep 10, 2020 at 15:57
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    $\begingroup$ @kjetilbhalvorsen What would you think of an "omitted" variable? $\endgroup$
    – Dave
    Commented Sep 10, 2020 at 18:50

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The term "excluded" makes sense to me.

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