Question: For the investment data given in the following table, which model would you chooseFEM or REM? Why? C-1 C-1 F-1 Observation E-1 Observation GE US

For the investment data given in the following table, which model would you choose€”FEM or REM? Why?

C-1 C-1 F-1 Observation E-1 Observation GE US 1935 1935 209.9 1362.4 53.8 33.1 1170.6 97.8 45.0 77.2 1936 355.3 1807.1 5

C-1 C-1 F-1 Observation E-1 Observation GE US 1935 1935 209.9 1362.4 53.8 33.1 1170.6 97.8 45.0 77.2 1936 355.3 1807.1 50.5 1936 2015.8 104.4 1937 1938 1939 1940 1941 2803.3 118.0 1937 469.9 2673.3 1801.9 118.1 44.6 2039.7 156.2 1938 1939 262.3 260.2 1957.3 2256.2 2132.2 1834.1 230.4 312.7 48.1 172.6 74.4 186.6 1940 1941 361.6 2202.9 254.2 472.8 2380.5 113.0 220.9 261.4 1588.0 1942 445.6 2168.6 298.7 1942 91.9 287.8 1943 1944 1943 1944 1945 1946 361.6 1985.1 301.8 61.3 1749.4 319.9 56.8 93.6 1687.2 2007.7 321.3 288.2 258.7 1813.9 279.1 319.6 1945 1850.2 213.8 346.0 1946 420.3 2067.7 232.6 264.8 306.9 159.9 2208.3 1947 147.2 1656.7 456.4 1947 420.5 494.5 1796.7 1948 146.3 1604.4 543.4 1948 1625.8 1949 1667.0 405.1 351.1 1949 98.3 1431.8 1610.5 1819.4 618.3 647.4 418.8 588.2 645.2 641.0 1950 93.5 1950 1677.4 357.8 341.1 1951 135.2 671.3 1951 1952 2289.5 1952 157.3 2079.7 726.1 2159.4 444.2 1953 2031.3 623.6 1953 179.5 2371.6 2759.9 800.3 189.6 1954 459.3 2115.5 669.7 1954 888.9 GM WEST 3078.5 1935 12.93 191.5 1.8 0.8 1935 1936 317.6 2.8 1936 25.90 516.0 391.8 4661.7 52.6 156.9 209.2 1937 410.6 257.7 5387.1 1937 1938 35.05 729.0 7.4 2792.2 1938 22.89 560.4 18.1 1939 330.8 1939 18.84 519.9 23.5 4313.2 203.4 1940 461.2 4643.9 207.2 1940 28.57 628.5 26.5 255.2 1941 512.0 4551.2 1941 48.51 43.34 537.1 36.2 1942 561.2 60.8 1942 448.0 3244.1 303.7 1943 1944 1945 1946 1947 1943 37.02 617.2 84.4 499.6 547.5 4053.7 264.1 4379.3 201.6 1944 37.81 626.7 91.2 1945 561.2 688.1 568.9 4840.9 265.0 39.27 53.46 737.2 92.4 4900.0 402.2 1946 760.5 86.0 581.4 662.3 583.8 3526.5 761.5 1947 55.56 111.1 3245.7 1948 529.2 922.4 1948 49.56 130.6 1949 1950 141.8 136.7 1020.1 32.04 1949 1950 555.1 3700.2 642.9 755.9 891.2 32.24 54.38 71.78 90.08 635.2 3755.6 4833.0 1099.0 1951 1952 1207.7 1951 732.8 129.7 1952 1953 1954 145.5 174.8 4924.9 1430.5 864.1 1193.5 1953 1304.4 6241.7 1777.3 1954 2226.3 68.60 1188.9 213.5 1486.7 5593.6

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