The Random Effects Estimate Is Identical to the Fixed Effects

question 16

Multiple Choice

The random effects estimate is identical to the fixed effects estimate if the estimated transformation parameter , , in generalized least squares estimation that eliminates serial correlation between error terms is, _____.

• A)less than zero
• B)equal to zero
• C)equal to one
• D)greater than one

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Definitions:

Uncertainty

A situation in which the lack of surety about what is happening, what will happen, or what the potential outcomes are.

Alternative Solutions

Different options or approaches to solving a problem or addressing a situation.

Intuition

The ability to understand or know something immediately based on feelings rather than facts or evidence.

Creativity

The capacity to generate unique and worthwhile concepts.