A regression analysis involved 2 independent variables and 27 observations. The critical value of t for testing the significance of each of the independent variable's coefficients will have _____ degrees of freedom.
A) 27
B) 26
C) 24
D) 25

Question

Quizplus · Accepted Answer

In a regression analysis, the degrees of freedom for testing the significance of an independent variable's coefficient is calculated as the total number of observations minus the number of parameters being estimated (including the intercept). Here, with 27 observations and 2 independent variables plus 1 intercept, the degrees of freedom = 27 - (2 + 1) = 24.

A Regression Analysis Involved 2 Independent Variables and 27 Observations