A regression model involved 20 independent variables and 200 observations. The critical value of t for testing the significance of each of the independent variable's coefficients will have
A) 18 degrees of freedom.
B) 200 degrees of freedom.
C) 199 degrees of freedom.
D) 179 degrees of freedom.

Question

Quizplus · Accepted Answer

The degrees of freedom for testing the significance of an independent variable's coefficient in a regression model is calculated as the number of observations minus the number of parameters being estimated (including the intercept). Here, with 200 observations and 20 independent variables plus 1 for the intercept, the degrees of freedom = 200 - (20 + 1) = 179.

A Regression Model Involved 20 Independent Variables and 200 Observations