In a random effects model, we assume that the unobserved effect is correlated with each explanatory variable.
Answer the following statement true (T) or false (F)
False
Rationale: FEEDBACK: In a random effects model, we assume that the unobserved effect is uncorrelated with each explanatory variable.
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With no inflation, a bank would be willing to lend a business firm $5 million at an annual interest rate of 6%. But if the rate of inflation was anticipated to be 4%, the bank would most likely charge the firm an annual interest rate of
A. 10%. B. 2%. C. 6%. D. 4%.
Which of the following is the appropriate order of policy responses?
A. Response design, recognition, impact, and implementation. B. Recognition, response design, implementation, and impact. C. Recognition, response design, impact, and implementation. D. Response design, implementation, recognition, and impact.
Assume an economy produces only hamburgers and hotdogs and the base year is 2005. Quantity producedPrices 2005200620052006Hamburgers2,0003,0002$3Hotdogs3,0004,0001$1.50Given the data in the table above, what is the value of real GDP in 2006?
A. $ 7,000 B. $ 5,000 C. $10,000 D. $10,500
In a Dutch auction, the higher the bid, the ________ the surplus and the ________ chance of winning
A) higher; lower B) lower; higher C) higher; higher D) lower; lower