Multiple Choice
Fixed-effects models
A) remove the time-variant component of the error term.
B) remove the time-invariant component of the error term.
C) work by first-differencing the data.
D) remove the heteroskedasticity in the data.
Correct Answer:
Verified
Correct Answer:
Verified
Q9: If there is a pooled cross-section model
Q10: Random-effects models<br>A)assume that the time invariant component
Q11: One can first-difference panel data in a
Q12: Pooled cross-section models are not the preferred
Q13: Suppose that in an effort to
Q15: What is panel data? How does it
Q16: Panel data differs from cross-section data in
Q17: The biggest difference between fixed-effects and random-effects
Q18: Fixed-effects models and first-differenced models<br>A)assume that the
Q19: What is a first-differenced model? How is