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Panel Data Analysis Quiz

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1. What does panel data consist of?

2. Which model is typically used when dealing with panel data to control for unobservable heterogeneity?

3. What is the main advantage of using panel data over cross-sectional data?

4. In panel data analysis, what does the Hausman test compare?

5. What distinguishes a fixed effects model from a random effects model in panel data analysis?

6. In the context of panel data analysis, what is "pooled OLS"?

7. Why might a researcher prefer the random effects model over the fixed effects model in panel data analysis?

8. What is a common issue faced when analyzing panel data, particularly affecting fixed effects models?

9. What does the term "dynamic panel data model" refer to?

10. Which diagnostic test is commonly used to check for serial correlation in panel data models?