​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.

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Definitions:

Paid-In Surplus

Additional capital that is contributed by shareholders above the par value of the shares, also known as additional paid-in capital.

Shareholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing ownership equity.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from total revenue, representing the company's profit.

Dividends Paid

The sum of money paid by a company to its shareholders out of its profits or reserves.