Solved

Which of the Following Is Not a Reason Random Effects

Question 11

Multiple Choice

Which of the following is not a reason random effects (RE) results may be preferred to fixed effects (FE) ?


A) RE accounts for the random sampling process that generated the data
B) RE is a GLS estimator so in large samples it has a smaller variance than FE which is a least squares estimator
C) RE produces a coefficient for race,gender,or other individual characteristics that are constant over time
D) RE estimates are more robust in the case of endogenous regressors

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents