3. Fixed effects regression assumptions and standard errors (a) What are the four assumptions for fixed effects regression listed in the textbook? (b.1) Under Assumption 2, are observations independent across entities? (b.2) Under Assumption 2, can observations be correlated over time within an entity? (b.3) You randomly draw a sample of 1000 UCA students' weight in the last 18 months (each student has 18 observations). Based on your answers in (b.1) and (b.2), are observations for the same student in different months correlated? Are observations independent across different students? (c) What is autocorrelation? (d) In a panel regression, if the regression errors are both heteroskedastic and autocorrelated, what type of standard errors should be applied? Accessibility: Investigate English (United States) Text Predictions: On

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3. Fixed effects regression assumptions and standard errors
(a) What are the four assumptions for fixed effects regression listed in the textbook?
(b.1) Under Assumption 2, are observations independent across entities?
(b.2) Under Assumption 2, can observations be correlated over time within an entity?
(b.3) You randomly draw a sample of 1000 UCA students' weight in the last 18 months (each
student has 18 observations). Based on your answers in (b.1) and (b.2), are observations for the same
student in different months correlated? Are observations independent across different students?
(c) What is autocorrelation?
(d) In a panel regression, if the regression errors are both heteroskedastic and autocorrelated, what
type of standard errors should be applied?
Accessibility: Investigate
English (United States) Text Predictions: On
Transcribed Image Text:KX 3. Fixed effects regression assumptions and standard errors (a) What are the four assumptions for fixed effects regression listed in the textbook? (b.1) Under Assumption 2, are observations independent across entities? (b.2) Under Assumption 2, can observations be correlated over time within an entity? (b.3) You randomly draw a sample of 1000 UCA students' weight in the last 18 months (each student has 18 observations). Based on your answers in (b.1) and (b.2), are observations for the same student in different months correlated? Are observations independent across different students? (c) What is autocorrelation? (d) In a panel regression, if the regression errors are both heteroskedastic and autocorrelated, what type of standard errors should be applied? Accessibility: Investigate English (United States) Text Predictions: On
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