Which of the Following Is a Reason for Using the Correlated

question 18

Multiple Choice

Which of the following is a reason for using the correlated random effects approach?

• A)It provides unbiased and consistent estimators when the idiosyncratic errors are serially correlated.
• B)It provides unbiased and consistent estimators when the idiosyncratic errors are heteroskedastic.
• C)It provides a more efficient estimate than the fixed effects approach.
• D)It provides a way to include time-constant explanatory variables in a fixed effects analysis.

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Definitions:

Paranoid Reaction

An exaggerated, irrational distrust or suspicion of others, often symptomatic of a psychological disorder.

Hallucinogen Dependence

A substance use disorder marked by the compulsive use of hallucinogenic drugs despite adverse consequences.

Hallucinogen-Induced

Pertaining to conditions or symptoms triggered by the use of substances that cause hallucinations.

Psychotic Disorder

A mental health condition characterized by an impaired relationship with reality, including symptoms such as hallucinations and delusions.