(New Question) Consider the following regression equation with panel data: Yt = Bo + B1 Xt + y½ D2; + v» D3; + ·.+ Yn Dng + ut Where X is our regressor of interest and D2; is a binary variable that equals to 1 when i=2 and O otherwise. Binary variables D3 ,. , Dn¡ are defined similarly. Which of the followings is not correct? Assuming there's no other omitted variables, the OLS estimator for B1 is unbiased and consistent. O The equation should be estimated by OLS with clustered heteroskedasticity-robust standard errors. The intercept for entity j (j # 1) is Yj. O The estimation of the above equation is only possible if n is not too large.
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
Step by step
Solved in 2 steps