In Panel Data Regression Using the Leading R Package for This

question 9

Multiple Choice

In panel data regression using the leading R package for this procedure, what do idiosyncratic effects refer to?

• A) random effects variance at the individual level
• B) fixed effects variance at the individual level
• C) random effects variance not explained by the subject (individual) variable or fixed effects
• D) fixed effects, as opposed to variance components

---

Definitions:

Retailers

Retailers are businesses or individuals that purchase goods from manufacturers or wholesalers and sell them directly to consumers.

Promotional Activities

Marketing efforts intended to increase awareness or sales of a product or service, often through discounts or advertising.

Profitable

A state where a business or investment generates more revenue than the expenses incurred, leading to a financial gain.

Retailers

Businesses that sell goods directly to consumers, acting as the final link in the supply chain.