Under What Conditions Is the Bias Caused by Autocorrelaed Errors

question 12

Multiple Choice

Under what conditions is the bias caused by autocorrelaed errors in a fixed effect model the most severe?

• A) We have many observations for each unit.
• B) We have few observations for each unit.
• C) We have many observations for each time period.
• D) We have few observations for each time period.

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