In Order to Employ the LSDV Approach in a One-Way

Multiple Choice

In order to employ the LSDV approach in a one-way fixed effects model, we have to:

A) Create a dummy variable for every unit and include it in the model.
B) Create a dummy variable for every unit and include all but one in the model.
C) Subtract the unit specific averages from both the dependent and independent variables.
D) Create dummy variables for every unit and subtract the unit specific average from the dependent variable.