Question

Suppose you have two individual cross-sectional data sets on car prices for the years 2002 and 2004 covering the time periods both before and after the U.S. invasion of Iraq in 2003. You have 130 observations in your 2002 data set and 90 observations in your 2004 data set. You have decided to append your two individual cross-sectional data sets together to form one pooled cross-sectional data set. After appending the two data sets, you now have 220 total observations in your new pooled cross-sectional data set. What are the primary advantages of pooled cross-sectional data over ordinary cross-sectional data? Check all that apply. Pooling cross sections provides a larger sample size. Pooling cross sections enables you to ignore the differences in data over time, since you are left with just one cross-sectional data set. Pooling cross sections enables you to observe changes in key relationships over time. Pooling cross sections enables you to form a panel data set.

Answer 1

An) The primary advantages of pooled cross-sectional data over ordinary cross sectional data. - Rooling cross-section provides a larger 1 sample size. - Rooling cross sections enables you to observe changes in key relationships over time.