The Biggest Difference Between Fixed-Effects and Random-Effects Models Is That

Multiple Choice

The biggest difference between fixed-effects and random-effects models is that

A) fixed effects models assume that the unobserved heteroskedasticity is uncorrelated with the independent variables.
B) random effects models do not completely remove the time-invariant component of the error term.
C) fixed effects models completely remove the time-variant component of the error term.
D) random effects models are random while fixed-effects models are fixed.