A regression model exhibits unobserved heterogeneity if _____.
A)there are unobserved factors affecting the dependent variable that change over time
B)there are unobserved factors affecting the dependent variable that do not change over time
C)there are unobserved factors which are correlated with the observed independent variables
D)there are no unobserved factors affecting the dependent variable

Question

Quizplus · Accepted Answer

Unobserved heterogeneity refers to unobserved factors that affect the dependent variable and remain constant over time.

A Regression Model Exhibits Unobserved Heterogeneity If _____