The Notation for Panel Data Is (Xit,Yit),i = 1

question 17

Multiple Choice

The notation for panel data is (Xit,Yit) ,i = 1,... ,n and t = 1,... ,T because

• A)we take into account that the entities included in the panel change over time and are replaced by others.
• B)the X's represent the observed effects and the Y the omitted fixed effects.
• C)there are n entities and T time periods.
• D)n has to be larger than T for the OLS estimator to exist.

---

Definitions:

Journal Entries

The method by which financial transactions are recorded in the accounting records of a business, detailing the accounts affected and the amounts.

Maturity Date

The date on which a financial obligation must be repaid or a bond or other instrument reaches its expiration and the principal is due back to the investors.

Note Receivable

A claim or debt that one party owes to another under the terms of a promissory note, indicating money to be received.

Perpetual Inventory System

An inventory management system where records of inventory quantities are updated on a continuous basis as transactions occur.