A regression analysis involved 10independent variables and 27 observations. The critical value of t for testing the significance of each of the independent variable's coefficients will have
A) 27 degrees of freedom.
B) 26 degrees of freedom.
C) 21 degrees of freedom.
D) 16 degrees of freedom.

Question

Quizplus · Accepted Answer

The degrees of freedom for testing the significance of each coefficient in a regression analysis is calculated as the number of observations minus the number of parameters estimated (including the intercept). Here, it is 27 observations minus 10 independent variables and 1 intercept, resulting in 16 degrees of freedom.

A Regression Analysis Involved 10independent Variables and 27 Observations