A Potential Downside of Using Within Estimation Is

question 32

Multiple Choice

A potential downside of using within estimation is:

• A) r-squared is less meaningful.
• B) the coefficients will be biased.
• C) the estimator will not yield estimates of the fixed effects themselves.
• D) the standard errors will be larger.

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Definitions:

Sum Certain

A fixed or determined amount of money specified in a legal document that is not subject to any conditions or contingencies.

Negotiable

Capable of being transferred or modified through discussion or upon reaching an agreement.

Oral Promise

An oral promise is a commitment or assurance given verbally rather than in written form, which may or may not be legally enforceable depending on the context.

Negotiable

A characteristic of a financial instrument (like a check or bill of lading) that allows it to be transferred from one party to another as a form of payment or investment.