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In choosing between random effects and fixed effects in panel data analysis, which of the following is a valid consideration?I. Observations are random draws from the population or not.II. The unobserved effects in the model are dummy variables or not.III. The unobserved effects in the model are correlated with the explanatory variables or not.

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MCQs on Econometrics, which is the use of statistical methods to develop theories or test existing hypotheses in economics or finance. 
 


In choosing between random effects and fixed effects in panel data analysis, which of the following is a valid consideration?<br/>I. Observations are random draws from the population or not.<br/>II. The unobserved effects in the model are dummy variables or not.<br/>III. The unobserved effects in the model are correlated with the explanatory variables or not.





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