Chapter 10 Econometrics Study Guide Exam and All Correct Answers.

use multiple regression - Answer to control for variables on which we have data cannot, omitted variable bias - Answer if data are not available for certain variables, they ___ be included in the regression --> possible ___. panel data - Answer each observational unit, or entity, is observed at two or more time periods use for panel data - Answer controlling for omitted variables without actually observing them fixed effects regression - Answer controls for omitted variables that differ across entities but are constant over time time fixed effects regression - Answer control for omitted variables that are constant across entities but change over time entity, time period - Answer We need additonal notation for panel data. The first, i, refers to ___ and the second, t, refers to ___. balanced - Answer A(n) ___ panel has all its observations. unbalanced - Answer A(n) ___ panel has some missing data for at least one time period or for at least one entity. fixed effects regression model - Answer Yit = B1*Xit + ai + uit, or Yit = B0 + B1*Xit + y2*D2i + y3*D3i +... +yn*Dni + ui (binary variable form) intercepts, binary - Answer The fixed regression model has n different ___, one for each entity. These _X_ can be represented by a set of ___ variables. effect - Answer Yit = B1*Xit + ai + uit; ai can be thought of as the "___" of being in entity i entity fixed effects - Answer a1,..., an