Which of the Following Is Not a Reason Random Effects

question 7

Multiple Choice

Which of the following is not a reason random effects (RE) results may be preferred to fixed effects (FE) ?

• A)RE accounts for the random sampling process that generated the data
• B)RE is a GLS estimator so in large samples it has a smaller variance than FE which is a least squares estimator
• C)RE produces a coefficient for race,gender,or other individual characteristics that are constant over time
• D)RE estimates are more robust in the case of endogenous regressors

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Definitions:

Italy

A European country located in the heart of the Mediterranean Sea, known for its rich history, art, culture, cuisine, and contributions to science and literature.

Edmund Blunden

Edmund Blunden was an English poet, author, and critic, best known for his poetry that detailed his experiences in World War I and the English countryside.

World War I

A global conflict mainly involving European powers that lasted from 1914 to 1918, also known as the Great War, marked by trench warfare and the extensive use of chemical weapons.

Haunted

Refers to being visited or inhabited by ghosts or spirits.