​Which of the Following Is an Advantage of Panel Data

question 14

Multiple Choice

​Which of the following is an advantage of panel data?

• A)​We can difference the dependent variable, y, across time for different cross-sectional units.
• B)​We can add the dependent variable, y, across time for different cross-sectional units.
• C)​We can difference the dependent variable, y, across time for the same cross-sectional units.
• D)​We can add the dependent variable, y, across time for the same cross-sectional units.

---

Definitions:

Net Income

Net income is the profit a company makes after deducting all its costs, expenses, interest, and taxes from its total revenues.

Book Value

The worth of an asset as stated in its balance sheet, factoring in the original cost of the asset reduced by depreciation.

Equity Method

An accounting technique used by a company to record its investment in another company, typically when it has significant influence but does not fully control it, usually through owning 20% to 50% of the voting stock.

Common Stock

Represents ownership shares in a corporation, giving holders voting rights and a share in the company’s profits through dividends.