With Panel Data, Regression Software Typically Uses an "Entity-Demeaned" Algorithm

question 1

Multiple Choice

With Panel Data, regression software typically uses an "entity-demeaned" algorithm because

• A)the OLS formula for the slope in the linear regression model contains deviations from means already.
• B)there are typically too many time periods for the regression package too handle.
• C)the number of estimates to calculate can become extremely large when there are a large number of entities.
• D)deviations from means sum up to zero.

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