A t statistic has been calculated in order to test the significance of the $ \hat{ß}$ estimate from a least squares analysis. The estimate was based on 50 observations. How many degrees of freedom are associated with this test?
A) 50
B) 48
C) 49
D) 47
E) none of the above

Question

Quizplus · Accepted Answer

The degrees of freedom for a t-test in a simple linear regression is calculated as the number of observations minus the number of parameters estimated. Here, 50 observations are used, and typically 2 parameters (intercept and slope) are estimated, so the degrees of freedom is 50 - 2 = 48.

A T Statistic Has Been Calculated in Order to Test ß^ \hat{ß}ß^

A T Statistic Has Been Calculated in Order to Test $\hat{ß}$