Multiple Choice
Which of the following assumptions is required for obtaining unbiased random effect estimators?
A) The idiosyncratic errors are heteroskedastic.
B) The unobserved effect is independent of all explanatory variables in all time periods.
C) The idiosyncratic errors are serially correlated.
D) The unobserved effect is correlated with the explanatory variables.
Correct Answer:
Verified
Correct Answer:
Verified
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