Question: Solve the questions in the image below CS CamScanner QUESTION SIX (15 Marks) a) What is meant by i) Panel data? (1 mark) ii) How

Solve the questions in the image below

CS CamScanner QUESTION SIX (15 Marks) a) What is meant by i) Panel data? (1 mark) ii) How does panel data differ from cross-sectional and time-series data? (1 mark) iii) What makes a panel data superior over cross-sectional data? (1 mark) iv) What do we mean by the concept of "unobservable heterogeneity' (2 marks) b) What is Fixed Effects (FE) regression? In detail and supported with 'economic derivations' explain how FE model can be used to eliminate unobserved effect using the following approaches: i) Within-groups method (2 marks) ii) The first-difference methods (2 marks) c) What meant by i) Random Effects (RE) regression? (1 mark) if) In details and supported with "econometric derivation' explain how the RE model can be used to eliminate unobserved effect (1 mark) ii) What is the difference between the RE model and FE model? (I mark) iv) 'How Hausman test' is used to differentiate between FE model and RE model (2 marks)

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