If you included both time and entity fixed effects in the regression model which includes a constant, then:O a. you have perfect multicollinearity.O b. you can exclude the constant and one entity binary variable to estimate the model.you can exclude the constant and one time binary variable to estimate the model.O d. you can exclude one time binary variable and one entity binary variable to estimate the model.O e. All of the above.Of.None of the above.

Answered: If you included both time and entity…

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter4: Estimating Demand

Section: Chapter Questions

Problem 8E

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