Question 11 0.9 pts You observe the number of vacations taken by Zac and Skylar in 2012, 2013, and 2014. In those years, Zac took 3, 7, and 5 vacations, respectively. Skylar took 2, 6, and 10. First, the comparison of which two numbers reflects the variation between Zac and Skylar in their vacation-taking? Second, use only the within-individual variation to fill in the final column in this table: Person Year Vacations Within Zac 2012 3 Zac 2013 7 Zac 2014 5 Skylar 2012 2 Skylar 2013 6 Skylar 2014 10 Edit View Insert Format Tools Table Bpt Paragraph BIU A QV TV : p 1 0words > Question 6 0.91 pts Which of the following is a reason why fixed effect models can't estimate coefficients on variables that do not vary within unit? O The de-meaned variables will not vary. O The errors will be homoscedastic. O We can estimate such a variable with fixed effects. O Because no fixed effects exists in such a case. Question 7 0.91 pts In order to employ the least-squares dummy variable ("include a set of binary indicators") approach in a one-way fixed effects model, we have to: O Create dummy variables for every unit and subtract the unit specific average from the dependent variable. O Create a dummy variable for every unit and include it in the model. Subtract the unit specific averages from both the dependent and independent variables. O Create a dummy variable for every unit and include all but one in the model. Question 8 0.91 pts The benefit of the de-meaned approach ("absorbing the fixed effect") over the LSDV approach ("including a set of binary indicators") is: O It gives more accurate coefficient estimates. O The coefficient estimates have a lower standard error. O We will be able to estimate coefficients on variables that do not vary within unit. O Easier to implement if there are a lot of different units