Which of the following is true of fixed effect estimators A. The fixed effects estimator is equal to the instrumental variable estimator if R^2 is equal to 1. B. The fixed effects estimators are biased if the regression model exhibits multicollinearity. C. The fixed effects estimators have lower variance than the ordinary least squares estimators. D. The fixed effects estimators have large standard errors when R^2 lies close to 0.
Which of the following is true of fixed effect estimators A. The fixed effects estimator is equal to the instrumental variable estimator if R^2 is equal to 1. B. The fixed effects estimators are biased if the regression model exhibits multicollinearity. C. The fixed effects estimators have lower variance than the ordinary least squares estimators. D. The fixed effects estimators have large standard errors when R^2 lies close to 0.
Linear Algebra: A Modern Introduction
4th Edition
ISBN:9781285463247
Author:David Poole
Publisher:David Poole
Chapter7: Distance And Approximation
Section7.3: Least Squares Approximation
Problem 31EQ
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Which of the following is true of fixed effect estimators
A. The fixed effects estimator is equal to the instrumental variable estimator if R^2 is equal to 1.
B. The fixed effects estimators are biased if the regression model exhibits multicollinearity.
C. The fixed effects estimators have lower variance than the ordinary least squares estimators.
D. The fixed effects estimators have large standard errors when R^2 lies close to 0.
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