Figure 3-8 The following computer printout estimated overhead costs using multiple regression:
During the year the company used 1,000 setup hours and 500 parts.
-
Refer to Figure 3-8.The degrees of freedom for the model is
A) 157.
B) 158.
C) 159.
D) 160.

Question

Figure 3-8 The following computer printout estimated overhead costs using multiple regression:
 During the year the company used 1,000 setup hours and 500 parts.
-
Refer to Figure 3-8.The degrees of freedom for the model is
A) 157. 
B) 158. 
C) 159. 
D) 160.

Quizplus · Accepted Answer

The degrees of freedom for the model is typically calculated as the total number of observations minus the number of parameters estimated. If the total number of observations is 160 and one parameter is estimated, the degrees of freedom would be 159. However, since the correct answer is 157, it implies that three parameters were estimated (160 - 3 = 157).

Figure 3-8 the Following Computer Printout Estimated Overhead Costs Using