In the Panel Regression Analysis of Beer Taxes on Traffic

question 36

Multiple Choice

In the panel regression analysis of beer taxes on traffic deaths, the estimation period is 1982-1988 for the 48 contiguous U.S. states. To test for the significance of time fixed effects, you should calculate the F-statistic and compare it to the critical value from your F_q,∞ distribution, which equals (at the 5% level)

• A)2.01.
• B)2.10.
• C)2.80.
• D)2.64.

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Definitions:

Binomial Experiment

A statistical experiment that satisfies four conditions: a fixed number of trials, only two possible outcomes, independence of trials, and a constant probability of success.

Independent Trials

Experiments or trials in which the outcome of one trial does not affect the outcome of any other trials.

Binomial Experiment

A statistical experiment that has two possible outcomes for each trial and a fixed number of trials, where each trial is independent of the others.

Probability

A numerical expression of an event's probability, with the scale going from 0, symbolizing that the event cannot occur, to 1, signifying guaranteed occurrence.