Time Fixed Effects Regression Are Useful in Dealing with Omitted

question 11

Multiple Choice

Time Fixed Effects regression are useful in dealing with omitted variables

• A)even if you only have a cross-section of data available.
• B)if these omitted variables are constant across entities but vary over time.
• C)when there are more than 100 observations.
• D)if these omitted variables are constant across entities but not over time.

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Definitions:

Compounded Monthly

Interest calculated on the initial principal and also on the accumulated interest from previous periods on a monthly basis.

RRSP

Registered Retirement Savings Plan, a savings account, registered with the Canadian government, that defers income taxes on retirement savings until withdrawal.

Accumulate

The act of gathering or collecting over a period of time, often resulting in an increase in quantity.

Ordinary Annuity

An annuity where the payments are made at the end of each period for a fixed length of time.