If There Is a Pooled Cross-Section Model with and Intercept

question 9

Multiple Choice

If there is a pooled cross-section model with and intercept and five explanatory variables and there are 100 observations each year for three years

• A)the sample size is 100.
• B)there are 294 degrees of freedom.
• C)the sample size is 294.
• D)there are 300 degrees of freedom.

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Definitions:

Going-private Transaction

A process by which a publicly traded company is converted into a privately owned entity.

Equity Ownership

Equity ownership denotes the holding of shares in a company, thereby providing the shareholder a claim on a portion of the corporation's assets and earnings.

Corporate Takeover

The acquisition of one company by another, through either direct purchase or by acquiring a majority stake in the target company’s equity.

P/E Ratio

The price-to-earnings ratio, a measure of a company's current share price relative to its per-share earnings.