Which of the following explains the method of fixed effects regressions in panel data analysis?I. The 'within-groups' estimation in which data is time-demeaned for both the dependent variable and the explanatory variables.II. The 'first-differences method' in which the observations for the previous time period is subtracted from the observations for the current time period, for all time periods.III. The 'least squares dummy variable (LSDV) method' in which the unobserved effect is estimated by putting a dummy variable for each cross-sectional observation, along with the explanatory variables.

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