Unit of observation

In statistics, a unit of observation (or individual) is the unit described by the data that one analyzes. A study may treat groups as a unit of observation within a broader unit of analysis, for example, drawing conclusions on group characteristics from data collected over a more general level.

For example, in a study of the demand for money, the unit of observation might be chosen as the individual person, with different observations (data points) for a given instant in time differing as to which particular individual they refer to; or the unit of observation might be the country, with different observations differing only in regard to the country they refer to.