The Difference Between an Unbalanced and a Balanced Panel Is

question 28

Multiple Choice

The difference between an unbalanced and a balanced panel is that

• A)you cannot have both fixed time effects and fixed entity effects regressions.
• B)an unbalanced panel contains missing observations for at least one time period or one entity.
• C)the impact of different regressors are roughly the same for balanced but not for unbalanced panels.
• D)in the former you may not include drivers who have been drinking in the fatality rate/beer tax study.

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Definitions:

ROI

Return on Investment; a performance measure used to evaluate the efficiency of an investment or compare the efficiency of several investments.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, allowing for more accurate budgeting in variable cost situations.

Sales Commissions

Fees paid to sales employees as a reward for making sales, usually a percentage of the sales amount.

Selling Expenses

Costs incurred directly from the selling of products or services, including advertising, sales commissions, and store maintenance.