Well fit model that explains a significant portion of the outcome variable's variance.

Row 1 (interpreted like Figure 3) shows the distribution of the errors in marginal effects estimates from the RE estimation (red), FE estimation (blue), and WB approach (green). Row 2 (interpreted like Figure 4) shows MSE associated with the RE estimation (red), FE estimation (blue), and WB approach (green) errors. Row 3 (interpreted like Figure 6) shows the distribution of the RMSE from the fitted values estimated using RE estimation (red), FE estimation (blue), and WB approach (green). The variance of the residual is set such that it explains only 10% of the variation of the outcome variable. All other simulation input parameters are set to baseline.