Which of the Following Is a Property of Dummy Variable

question 5

Multiple Choice

Which of the following is a property of dummy variable regression?

• A)This method is best suited for panel data sets with many cross-sectional observations.
• B)The R-squared obtained from this method is lower than that obtained from regression on time-demeaned data.
• C)The degrees of freedom cannot be computed directly with this method.
• D)The major statistics obtained from this method are identical to that obtained from regression on time-demeaned data.

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