Which of the Following Is a Property of Dummy Variable

question 5

Multiple Choice

Which of the following is a property of dummy variable regression?

• A)This method is best suited for panel data sets with many cross-sectional observations.
• B)The R-squared obtained from this method is lower than that obtained from regression on time-demeaned data.
• C)The degrees of freedom cannot be computed directly with this method.
• D)The major statistics obtained from this method are identical to that obtained from regression on time-demeaned data.

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Definitions:

Expected Behavior

The actions or reactions that are anticipated from someone in a particular role or situation based on societal or cultural norms.

Mental Illness

A wide range of mental health conditions that affect mood, thinking, and behavior, potentially causing distress or difficulty in functioning in social, work, or family activities.

Limited Mobility

The state or condition of having restricted ability to move freely, often due to physical, social, economic, or environmental factors.

Daily Living

The routine activities and tasks performed by individuals on a day-to-day basis, including personal care, work, and leisure activities.