Which of the Following Statement in Regards to Cross-Sectional Data

question 6

Multiple Choice

Which of the following statement in regards to cross-sectional data and longitudinal data is correct?

• A) Both cross sectional and longitudinal data can provide repeated estimates over time.
• B) Longitudinal data compare different individuals at one point in time.
• C) Cross-sectional estimates compare different individuals at one point in time.
• D) Longitudinal data do not provide a way of removing the effects of person-specific characteristics.
• E) Cross-sectional estimates compare different individuals over time.

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Definitions:

Annuity Contract

A financial product sold by financial institutions that provides a series of payments in exchange for an initial payment.

Annual Return

The percentage change in an investment's value over a year, accounting for dividends, capital gains, and interest earned.

Investment

Assets acquired or money spent in the hope of generating income or profit over time, including stocks, bonds, property, or equipment.

Compound Interest

Interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods.