If there is a pooled cross-section model with and intercept and five explanatory variables and there are 100 observations each year for three years
A)the sample size is 100.
B)there are 294 degrees of freedom.
C)the sample size is 294.
D)there are 300 degrees of freedom.

Question

Quizplus · Accepted Answer

The sample size is 300 (100 observations each year for three years). With five explanatory variables plus an intercept, there are six parameters to estimate. Degrees of freedom are calculated as the sample size minus the number of parameters estimated: 300 - 6 = 294.

If There Is a Pooled Cross-Section Model with and Intercept