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BUAN 6337 EXAM 2 Questions with Correct Answers
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BUAN 6337 EXAM 2 Questions with Correct Answers
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BUAN 6337 EXAM 2 Questions with Correct AnswersLongitudinal Data Analysis:
- How data is measured
- The models can distinguish... Correct Answer-- Repeated
measurements are taken on a subject through time
- The models can distinguish changes over time within subjects from
differences between subjects at their baseline levels & study changes
over time between groups
Longitudinal Data Analysis:
- The models can estimate __________________ level regression
parameters and ____________________ level regression parameters.
Correct Answer-individual-level (subject specific); population-level
Examples of Longitudinal Studies (3): Correct Answer-- Examine how
price, capacity, and utilization affect the cost of an individual airline
- Examine whether the return on education changed over time
- Examine productivity growth across firms over time
Models that assume the observations are independent (OLS Regression)
might be inappropriate for longitudinal data because - Correct Answer--
Measurements taken on the same subject tend to be more similar than
measurements taken on different subjects
- Measurements taken close in time on the same subject tend to be more
similar than measurements taken far apart in time
,- The variances of longitudinal data often change with time
Proc Panel Characteristics:
- Can handle...
- Can handle...
- Can produce...
- Can test... Correct Answer-- Can handle a variety of error structures
- Can handle unbalanced panels
- Can produce several HCCME and HAC covariance matrices
- Can test for poolability, panel stationarity, autocorrelation
Proc Panel Error Structures (3 bullets): Correct Answer-- Fixed-effects,
random effects, and hybrid models (Hausman-Taylor, Amemiya-
MaCurdy
- Autoregressive models (first-order autoregression, dynamic model with
lagged regressors)
- Moving average models
Model Building Strategies:
- Conduct...
- Fit...
- Test...
- Run...
, - Compare... Correct Answer-- Conduct an exploratory data analysis by
illustrating the cross-sectional and longitudinal relationships in the data
- Fit a pooled OLS model as a benchmark
- Test for Fixed Effects or Random Effects (Hausman Test)
- Run the model and check fit diagnostics test
- Compare models using variance covariance structures
Why not use OLS with Panel Data? Correct Answer-- Correlations
within a unit across time period
- Within unit correlation stronger in the time periods close to each other
- Variance of longitudinal data tends to change over time
Fixed Effects Model: Assumptions
- Ai represents...
- Ai can be correlated with...
- The time-varying error, Uit, should be...
- The error term, Uit, is... Correct Answer-- Ai represents all time-
constant factors that affect Yit
- Ai can be correlated with the explanatory variables in any time period
- The time-varying error, Uit, should be uncorrelated with each of the
explanatory variables across all time periods
- The error term Uit is homoscedastic and serially uncorrelated
Yit = Correct Answer-B1Xit + Ai + Uit
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