We investigated observation-error-induced parameter bias using least s
quares and Stein-corrected least squares estimators in a model for pre
dicting lake phosphorus. The Stein-corrected estimator performed bette
r than the uncorrected estimator from bias and ''closeness'' perspecti
ves, though the corrected estimator was still biased. Examination of t
he model structure revealed that parameter bias is strongly related to
both the parameter space and sample space. Additionally, the model is
robust to parameter bias over a large portion of the sample and param
eter space, indicating that this model may be particularly useful for
estimation and prediction. Analogous structure in other models could b
e an important consideration for model selection.