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Effects of Education and Quality of Life … K. Kuswanto et al (125

Random model is better than the Fixed Effect model.

Table 3. Hausman Test Results
Test Summary Chi-Sq. Statistic Chi-Sq. d.f. Prob.
Cross-section random 0.01 2.00 0.99
if the Cross-section P value is
Based on Table 3, the random > 0.05, then the Common
Cross-section probability value Effect Model is better than
is 0.99 > α = 0.05, so the the Random Effect model.

Random model is better than
the Fixed Effect model.
The Lagrange Multiplier
test is used for the best model

between the Random Effect
Model and the Common
Effect Model. If the Cross-

section P value < 0.05, the
Random Effect model is
better than the Common

Effect Model, and conversely

Table 4. Lagrange Multiplier Test Results
Cross-section Time Both

Breusch-Pagan 0.02 0.51 0.52
P value -0.89 -0.48 -0.47
Effect model is better than the
Based on Table 4, the Random Effect model.

cross-sectional P value is 0.44 Based on the decision of
> 0.05 so that the Common the Chow test, the CE model

is better than the FE model,