Kizspy Question: 3
(Choose 1 answer)
Which of the following is a drawback of the random effects model?
A. It assumes that the individual-specific effects are uncorrelated with the independent variables
B. It cannot account for time-varying individual-specific effects
C. It requires a large sample size to obtain reliable estimates
D. It is less efficient than the fixed effects model when the individual-specific effects are correlated with the
independent variables
