A regression analysis involved 6 independent variables and 27 observations.The t distribution in which we will find the critical value of t for testing the significance of each of the independent variable coefficients will have
A)20 degrees of freedom
B)21 degrees of freedom
C)26 degrees of freedom
D)27 degrees of freedom
E)none of the above

Question

Quizplus · Accepted Answer

The degrees of freedom for the t distribution in a regression analysis is calculated as the number of observations minus the number of parameters being estimated. Here, it is 27 observations minus 6 independent variables (plus 1 for the intercept), which equals 20 degrees of freedom.

A Regression Analysis Involved 6 Independent Variables and 27 Observations